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
Charitable Contributions
Re: Charitable Contributions
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
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
Re: Charitable Contributions
Also, not included in AGI, so it could help with AGI-tied credits, deductions, limits.
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Re: Charitable Contributions
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.
Re: Charitable Contributions
Thank you for your replies. I will look at my state return to see if there is a difference.
LarryG
LarryG