The days are getting colder while the holiday decorations are coming out of storage. It is definitely the holiday giving season.
A key provision of the 2021 federal tax law increases the standard deduction to $12,550 for single taxpayers and $25,100 for married couples. This means that many who previously itemized deductions will find it advantageous to take the standard deduction instead. The Mount Carroll Community Foundation provides a great way for older donors to still enjoy a tax benefit white giving to our community.
While many people may no longer be able to itemize charitable contributions, seniors age 72 can still, in effect, get a tax benefit by contributing a portion of their IRA to a charity like the Mount Carroll Community Foundation to benefit our community.
A Charitable IRA Rollover allows donors age 72 and above to direct up to $100,000 from their traditional IRA to charity tax-free. The rollover counts toward the Required Minimum Distribution that must be withdrawn each year and because traditional IRA funds are not subject to income tax when given directly to charity, the gift reduces taxable income.
This gift strategy may be right for you if:
•You are 72 or older and have assets in a traditional IRA
•You wish to reduce your taxable income.
•You do not itemize deductions. As the transfer generates neither taxable income nor a tax deduction, you benefit even if you do not itemize your deductions.
•You wish to make impactful gifts to benefit Mount Carroll and the causes you care about.
There are many ways to support the vitality of Mount Carroll through the Mount Carroll Community Foundation, including giving to the Community Impact Endowment to provide for the immediate needs and opportunities of our community. Even if you do not itemize your deductions, a single filer may deduct $300 for charitable giving, a married couple up to $600.
If you have questions about how you might use a Charitable IRA Rollover, please contact the Mount Carroll Community Foundation at 1-844-550-4100, visit the webpage www.mtcarrollfoundation.org or email mountcarrollCF@CFGRB.org.
Mary Ann Hutchison
Mount Carroll MCCF