As a result of income tax reform last year, many seniors when filing their tax return may be able to benefit from using the “standard deduction” ($24,000 for married filing joint, $18,000 for head of household status and $12,000 for all others) in lieu of itemizing their deductions.
If you are age 70½ or older, a special tax rule allows you to make a “qualified charitable distribution” (donation) from your Individual Retirement Account (IRA) directly to the parish (electronically or a check made payable to the parish by the IRA). The donation from the IRA is excluded from your income (even if you use the standard deduction) and applies toward your “minimum required distribution” ( MRD ) thereby reducing your taxable income. Each eligible person can make an IRA donation up to $100,000 per year. This is a general overview and you should discuss it with your tax advisor.