Those who have reached the RMD age, and make charitable donations, might want to make sure they understand the QCD.
Understanding the effect of the QCD on the AGI can be important in tax planning. There might even be a couple of people who are trying not to cross the Medicare premium threshold when the RMD kicks in.
The QCD has to be done exactly right. The donation must be made directly to the qualified charity. Donor Advised Fund contributions will not qualify as a QCD. Keeping careful records of donations is crucial.
The QCD can be especially important to know about if you give up itemizing for the first time in a long time.
Warning: I am not a CPA or an accountant or anything financial. In fact, in that other thread about movies, I just revealed that when I was a kid I wanted to grow up to be "Our Miss Brooks."
I happen to think tax-planning this year could be really important. If you think you do not know everything and something could slip through the cracks, you might want to get some advice or at least do a little reading on the topic.
I have a friend who is one of Bob Bloom's clients and recommends him highly. It might be well worth it to have a discussion with him while there is still time to plan more effectively if you need to.
Whatever you do about your taxes, do your homework. The aforementioned postcards could end up being "Postcards from the 'Edge."
|