Charitable Contributions

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LarryG
Posts: 322
Joined: Sun Mar 11, 2007 11:10 am

Charitable Contributions

Post by LarryG »

Vanguard will make my charitable contributions by decreasing the RMD by that amount. This results in the contribution made before tax.
Is there any advantage to this method compared to deducting the amount of the contribution on schedule A?
Thank you
Larry Gottlieb
sport
Posts: 12094
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: Charitable Contributions

Post by sport »

I can think of two advantages:
1. You don't have to itemize to get the deduction.
2. You don't have to pay state income tax on the deduction. My state does not allow any itemized deductions.

Jeff
hillman
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Joined: Thu Jun 07, 2012 2:08 pm

Re: Charitable Contributions

Post by hillman »

Also, not included in AGI, so it could help with AGI-tied credits, deductions, limits.
MN Finance
Posts: 1926
Joined: Sat Dec 22, 2012 9:46 am

Re: Charitable Contributions

Post by MN Finance »

hillman wrote:Also, not included in AGI, so it could help with AGI-tied credits, deductions, limits.

Several things are tied to AGI, so a qualified gift of a *large* amount is better than receiving it and then writing it off. Something like medicare premiums are a good example.
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LarryG
Posts: 322
Joined: Sun Mar 11, 2007 11:10 am

Re: Charitable Contributions

Post by LarryG »

Thank you for your replies. I will look at my state return to see if there is a difference.
LarryG
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