PHOENIX, Ariz. – The Internal Revenue Service announced that certain owners of individual retirement arrangements have a limited time to make tax-free transfers to eligible charities and have them count for tax year 2012.
IRA owners age 70 or older have until Jan. 31 to make a direct transfer; alternatively, if they received IRA distributions during December 2012, to contribute, in cash, part or all of the amounts received to an eligible charity.
The American Taxpayer Relief Act of 2012 extended for 2012 and 2013 the provision authorizing qualified charitable deductions, otherwise taxable distributions from an IRA owned by someone 70 or older paid directly to an eligible charitable organization. Each year, the IRA owner can exclude from gross income up to $100,000 of these deductions.
The deduction option is available regardless of whether an eligible IRA owner itemizes deductions on Schedule A. Transferred amounts are not taxable and no deduction is available for the transfer. Qualified charitable deductions are counted in determining whether the IRA owner has met his or her IRA required minimum distributions for the year.
For tax year 2012 only, IRA owners can choose to report qualified charitable deductions made in January 2013 as if they occurred in 2012. In addition, IRA owners who received distributions during December 2012 can contribute, in cash, part or all of the amounts distributed to eligible charities during January 2013 and have them count as 2012 qualified charitable deductions.
More details can be found online.
Submitted by: IRS Media Relations
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