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DAF vs. QCD After 70½: Which Is Better, and How to Use Both

Josh Rendler, CFP®

Creator of Motion Retirement

Updated 2026-10-12 · Tax year 2026 · Figures checked October 10, 2026 · How this is checked

Which is better after 70½, a QCD or a donor-advised fund?

For yearly giving after 70½, a QCD (money sent straight from your IRA to a charity at 70½ or older, not taxed as income, up to a yearly limit) often comes out ahead. It stays out of your income, lowers your AGI (your total income minus a few set subtractions, the number many tax rules start from) and works even if you don't itemize. A QCD also counts toward your RMD (the least you must take out of a regular IRA each year once you reach a set age) once yours start. A donor-advised fund (a giving account at a charity that holds your gifts until you pick where they go) tends to fit better for giving stock and for big gifts in a high-income year. You can't send a QCD to a DAF, so many retirees use both.

  • You can't make a QCD to a DAF. IRA money sent to a DAF is a taxable withdrawal, not a QCD.
  • For yearly giving after 70½, a QCD often comes out ahead. It lowers AGI and needs no itemizing (costs like charity gifts you list one by one on your return instead of the flat amount). It counts toward your RMD too, once yours start.
  • A DAF tends to fit stock that has grown (stock or fund shares now worth more than you paid for them) and big gifts in a high-income year. It also fits gifts above the QCD limit. That limit is $111,000 per person in 2026 ($108,000 in 2025).
  • You can use a QCD and a DAF gift in the same year. One catch if you itemize: a QCD lowers AGI, which lowers the AGI-based caps. It also lowers the 0.5% floor (a 2026 rule: the first sliver of your charity gifts, half a percent of income, is not deductible), which helps you.
  • Two bills would allow QCDs to DAFs. Both are stuck in committee. Neither is law. The date we last checked is on the page.
Jump to a question

This page is for people 70½ or older who give to charity. It compares giving from your IRA with a QCD and giving through a DAF.

They aren’t really rivals. They solve different problems.

Can I give my QCD to a DAF?

No. A QCD must go straight to a public charity (a charity like a church, school or hospital that gets the best tax treatment for gifts), or to a few special kinds of foundation. A DAF is shut out. So is a supporting organization (a charity set up to help one or more specific public charities), and so are most private foundations (a charity funded mostly by one person, family or company, not a public charity).

A QCD must go to a public charity or one of a few special kinds of foundation.1 It can’t go to a donor-advised fund, a supporting organization, or most private foundations.1 The charity generally has to be organized in the United States or a U.S. possession.2 Being organized under U.S., state or D.C. law also counts.2

The firm that holds your IRA must pay the charity directly.34 Money paid to you first and then given away is not a QCD.3 A check your IRA firm issues to the charity still counts if you deliver it yourself.5 The IRS hasn’t said whether a check you write on an IRA checkbook counts.5

There is one narrow exception, and a DAF is still shut out. It lets a QCD fund a gift annuity (a deal where you give a charity money and it pays you a set amount for life) or a charitable remainder trust (a trust that pays you or people you name for life or a set term, then gives what is left to charity), under tight conditions. The wording below covers the limit and line 4c (the lines on your tax return where IRA withdrawals and QCDs are reported) of your tax return, where you write SIE (a one-time IRA gift to a charity trust or annuity that pays you back).

Once in your life, a QCD can fund a charitable gift annuity or a charitable remainder trust.6 The limit is $55,0006 in 2026, and it counts toward your yearly QCD limit.6 It was $50,000 in 2023 and is adjusted for inflation after that.7 Only QCDs can fund it, and only you, your spouse or both can get the payments.6 The right to those payments can’t be passed to anyone else.8 A gift annuity must start fixed payments of 5% or more within one year.6 The payments are taxed as ordinary income.6 On line 4c of Form 1040, you check box 3, enter “SIE,” and attach a statement.8

See the split-interest QCD and QCD eligibility.

A QCD also has to pass a full-deductibility test, with paperwork. That test is covered on QCD eligibility.

If your IRA sends money to a DAF anyway, it isn’t a QCD. It’s a taxable withdrawal. The money stays in your AGI. You might deduct it as a DAF gift, but only if you itemize.

A deduction sits lower on the return. It cuts your taxable income (the part of your income that tax rates are actually charged on), not your AGI. So it doesn’t cut the income behind Medicare’s IRMAA (an extra Medicare charge you pay when your income is above a set line) charges. And it only helps if your deductions beat your standard deduction (the flat amount most people can subtract from income without listing costs).

To deduct a gift the usual way, you must itemize on Schedule A.9 You get either your itemized deductions or the standard deduction, not both.10 Itemized deductions lower your taxable income, but not your AGI.1112 So they don’t lower measures built on AGI, like the income used for IRMAA.12

From 2026, if you itemize, your gifts count only above 0.5% of your AGI.13 By my reading, the floor comes off after the yearly AGI caps.14 It comes off in a set order, starting with gifts under the 20% cap and ending with cash to public charities.15

One 2026 deduction doesn’t need itemizing. It is narrow, and a gift to a DAF is one of the things it leaves out.

Two words below are worth knowing. The word property (anything you own other than cash, such as stock or a fund, not just a house) means things you own other than cash. And carryovers (the part of a gift too big to deduct this year, saved for up to five later years) are gift amounts moved to a later tax year.

From 2026, if you don’t itemize, you can deduct up to $1,00016 of cash gifts, or $2,00016 on a joint return.16 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.1718 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.17 It lowers your taxable income, but not your AGI.19

So that route usually costs more tax than a QCD to a working charity.

Could that change?

Two bills in Congress would allow QCDs to DAFs. One is in the House and one is in the Senate. 20 We last checked the official bill records on Congress.gov and GovInfo on October 10, 2026. Each had been sent to a committee with no further action. 20

Neither is law. The rule above applies until one passes. If one passed as written, it would only cover gifts made after that. 21

For CPAs and attorneysThe statutory exclusion and the pending bills

The QCD recipient must be an organization described in § 170(b)(1)(A), other than a § 509(a)(3) supporting organization “or any fund or account described in section 4966(d)(2)” (§ 408(d)(8)(B)(i)); Notice 2007-7 repeats the exclusion. 1 H.R. 2891 (IRA Charitable Rollover Facilitation and Enhancement Act of 2025, introduced 2025-04-10) and S. 3975 (the 2026 Senate version, introduced 2026-03-03) would each strike that phrase in their own Sec. 2(a), in identical operative text. 22 Each bill’s Sec. 2(b) applies the amendment to distributions after the date of enactment. 21 Neither bill touches the § 509(a)(3) exclusion in the same parenthetical, so supporting organizations would remain excluded. 22

Which is better, QCD or DAF?

For yearly giving after 70½, a QCD often comes out ahead. It keeps the money out of your income, so it lowers your AGI.

A DAF gift is a deduction you only get if you itemize. It doesn’t lower AGI. But a DAF can take stock, and it can take a big gift in one high-income year.

QCD Donor-advised fund
Can the two be combined? A public charity, not a donor-advised fund, supporting organization or most private foundations.12 Fund it from other money
Minimum age 70½ or older on the day the money leaves the IRA.23 None
Where the money comes from A traditional or inherited IRA (an IRA you get from someone who died), or a SEP or SIMPLE IRA with no employer contribution that year.2425. Paid by the IRA firm straight to the charity, never to you first.435 Cash, stock, other assets
Tax break Left out of income before AGI, so it can't also be deducted.2627 Itemized, so it lowers taxable income but not AGI.9101211
Lowers AGI Yes No
0.5% floor (2026) Doesn’t apply, by my reading (a QCD is never deducted) From 2026, itemized gifts count only above 0.5% of AGI.131415
2026 deduction for people who don’t itemize Not needed (already left out of income) Doesn’t apply. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.16171819
Counts toward RMD Counts toward your RMD for the year.2829, once yours start: 73 or 75, depending on birth year.3031. An inherited IRA is different. Its withdrawals are set by the owner’s death, not your age, so they can already be running at 70½32 No
Yearly limit $111,000 per IRA owner in 2026 ($108,000 in 2025).333435 A share of your AGI, by the kind of gift (the caps)
Avoids tax on a stock gain No Generally yes, for shares held more than a year. In a buyback, the gain is yours only if the charity was bound to give up the shares.36
Timing and control The charity gets the money now You suggest grants over later years; the sponsor has legal control
Grants to people No, charity only No

A donor-advised fund is an account held by a charity, called a sponsor, under your name.37 Once you give, the sponsor controls the money, and you only advise on grants and investments.37 The sponsor can’t be a private foundation.38 So by my reading, a gift to a sponsor that is a public charity counts as one.38 A few kinds of sponsor are ruled out by name, and gifts to those aren’t deductible.39 Those are a veterans’ group, a fraternal society, a cemetery company, or certain supporting organizations.39 Your receipt from the sponsor must also say the sponsor has full legal control of what you gave, or there’s no deduction.39 On a grant to a person, even family, the sponsor would owe a 20% tax.40 So sponsors make grants to charities, not to people.40

A DAF gift also has a yearly cap, set by what you give and who gets it. The caps are stated in full on the charitable deductions page.

Why a QCD often comes out ahead for yearly giving

It comes down to where each one lands on your tax return. A QCD never enters AGI. A deduction comes after AGI is figured.

Several retirement costs follow AGI, or a version of it:

  • Medicare’s IRMAA charges. AGI plus tax-exempt interest, usually from two years earlier.414243 See IRMAA.
  • How much of your Social Security is taxed. Half your benefits plus other income, including tax-exempt interest.4445
  • The senior deduction (an extra deduction for people 65 and older from 2025 through 2028), which shrinks as income rises. An extra $6,000 per person 65 or older, 2025 through 2028, itemizing or not.464748

See retirement tax coordination.

A QCD also works for people who take the standard deduction.

In 2026, the standard deduction is $32,20049 for a married couple filing jointly and $16,10049 for a single filer. Each married spouse 65 or older adds $1,65049. A single person 65 or older adds $2,05049, unless they are a surviving spouse.

If your mortgage is paid off, your deductions may never reach that. Then a DAF gift saves no tax. It would have to be big enough to push your itemized total past the standard deduction.

Related video Roth Conversions At Age 60, 65 OR 70? (Avoid This Costly Tax Mistake) · QCDs at 70, and a DAF as the earlier-retirement tool

When does a DAF fit better?

A DAF tends to fit when you have stock to give or a year with high income.

  • Stock that has grown. If you itemize, you deduct what long-held shares are worth today. You generally pay no tax on the gain. At least two limits apply to that gift. One is a yearly AGI cap, set by the kind of gift (the caps). The other is the floor. From 2026, itemized gifts count only above 0.5% of AGI.131415. A third trim can apply if your income reaches the top bracket. From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.5859. A QCD can only come from an IRA, so it can’t do this. See appreciated stock vs. QCD.
  • More than the QCD limit. Gifts above $111,00033 per IRA owner in a year can’t all be QCDs. $111,000 per IRA owner in 2026 ($108,000 in 2025).333435
  • A high-income year. A Roth conversion, business sale or big gain raises your income, and that raises your caps. A conversion or a sale taxed at ordinary rates usually raises your tax rate too. A packed DAF gift that year can save more than the same gifts spread out.
  • Before 70½. QCDs aren’t open to you yet. 70½ or older on the day the money leaves the IRA.23

Which one fits which situation?

A QCD is often worth considering when… A DAF is often worth considering when…
You’re 70½ or older and own a traditional IRA You’re under 70½, or giving from a regular account
You take the standard deduction You itemize, or will in a bunching year
Lower AGI matters (IRMAA, Social Security, senior deduction) You own long-held shares that have grown
You have an RMD you don’t need Income is unusually high this year
Yearly giving is within the QCD limit You want to give more than the limit, or pick charities later

Whether either fits depends on your age, your accounts, whether you itemize, and how your income changes year to year.

Can I use both a QCD and a DAF?

Yes. A QCD isn’t an itemized gift, so it isn’t added to your itemized total. Left out of income before AGI, so it can't also be deducted.2627

One catch if you itemize: a QCD lowers AGI. The caps on gifts are a share of AGI. So a very large stock gift in a QCD year may push part to a later year. The 0.5% floor is a share of AGI too, so a lower AGI shrinks it, which helps you.

To me, a QCD wins in most cases for people 70½ and up. It’s usually the most tax-efficient way to give. Here’s the order I usually look at:

  1. Yearly gifts made as QCDs, timed to cover all or part of the RMD. See QCDs and RMDs.
  2. In a year when itemizing makes sense anyway, or when income jumps, stock given to a DAF on top of the QCDs.
  3. The DAF for what it does best: flexibility. The money doesn’t have to reach a charity yet. You can spread grants over later years, use it for charities that can’t take stock, or give above the QCD limit.

One more place a DAF wins: in my experience, most accounts let you name a DAF as a beneficiary. Whether yours does is up to your account’s firm and the fund’s sponsor.

Whether this fits depends on your RMD, your other deductions and whether you own shares that have grown.

Worked example · tax year 2026QCDs every year, plus a DAF gift of stock in 2026
Assumptions
  • Married filing jointly; both spouses are 74.
  • RMD of $30,000 from one spouse's traditional IRA, with no after-tax basis. They give $12,000 a year to their church and other charities.
  • AGI is $162,000 if the full RMD is taken as a taxable withdrawal.
  • Other itemized deductions (state and local taxes, no mortgage) total $15,000.
  • In 2026 they also give stock worth $40,000, bought for $10,000 more than a year ago, to a DAF.
  • Tax is figured on the full 2026 federal return for each case. Social Security taxation is ignored to isolate this comparison.
  • Both are 65 or older, so each gets the $6,000 senior deduction, cut by 6% of modified AGI over $150,000: $10,560 total at $162,000 and $12,000 at $150,000.

Part 1: yearly gifts as a QCD instead of cash.

Step Cash gift after taking the RMD QCD
IRA withdrawal $30,000 $30,000
Amount left out as a QCD $0 $12,000
AGI $162,000 $162,000 − $12,000 = $150,000
Itemized total (other $15,000 + gifts after the 0.5% floor) $15,000 + $11,190 = $26,190 $15,000
Standard deduction (couple, both 65+) $32,20049 + 2 × $1,65049 = $35,500 $35,500
Non-itemizer cash gift deduction (joint cap) $2,000 $0 (a QCD is not a deduction)
Deduction used $37,500 (standard plus cash deduction is larger) $35,500
Senior deduction, both spouses 2 × ($6,00046 − 6% × $12,000) = $10,560 $12,000
Taxable income $162,000 − $37,500 − $10,560 = $113,940 $150,000 − $35,500 − $12,000 = $102,500

Taxable income is $11,440 lower with the QCD. That’s the $12,000 kept out of AGI, plus $1,440 of senior deduction kept, minus the $2,000 cash deduction the QCD route gives up. Both incomes are in the same 2026 bracket. So the QCD saves $11,440 × 22%60 = $2,517.

The cash gift does almost nothing here, because the couple doesn’t itemize. Only the deduction for people who don’t itemize, up to $2,00016, counts.

Part 2: adding $40,000 of stock to a DAF, on top of the QCD.

Step How it’s figured Amount
AGI (after the QCD) from Part 1 $150,000
30% cap for stock that has grown $150,000 × 30% $45,000
Stock given (under the cap) Value today $40,000
0.5% floor $150,000 × 0.5% $750
Charity deduction allowed $40,000 − $750 $39,250
Itemized total $39,250 + $15,000 $54,250
Extra over the standard deduction $54,250 − $35,500 $18,750
Taxable income after itemizing $150,000 − $54,250 − $12,000 senior deduction $83,750
Part of the $18,750 in the higher bracket ($102,500 − $100,80060) × 22%60 = $1,700 × that rate $374
Part in the lower bracket ($18,750 − $1,700) × 12%60 = $17,050 × that rate $2,046
Tax saved by itemizing $374 + $2,046 $2,420
Gain never sold $40,000 − $10,000 $30,000
Tax selling would have added (if they would have sold): $4,500 on the gain at 15%, plus tax on $3,600 of senior deduction lost to the higher AGI Full return, with and without the sale $5,292

By my reading, the floor doesn’t touch the QCD, because a QCD isn’t a deduction. No IRS source says this directly. The DAF could then fund about three more years of gifts, or bigger gifts they pick later.

One caution on Part 2. If the stock had been worth $50,000, the 30% cap ($45,000) would push $5,750 to a later year. That is the $5,000 over the cap plus the $750 floor amount.

Gifts lost to the 0.5% floor carry over only from a year when gifts went over a yearly AGI cap.61 Even then, only the floor amount tied to the kind of gift that went over joins the carryover.62 Otherwise, the amount lost to the floor is gone.61

Many people size a stock gift to that year’s AGI. See carryovers.

Other questions people ask

Are gifts from a DAF tax deductible?

Your gift into the DAF is deductible if you itemize. The later grants from the DAF to charities are not.

A gift is deducted in the year you pay it.63 A mailed check counts on the day you mail it, if it clears.6465 A gift on a credit card counts in the year you make the charge.64 A stock certificate you sign over counts the day you deliver or mail it to the charity.6665 Stock sent through your own broker or the company counts only when it is moved into the charity’s name.66

By my reading, you can’t deduct the grants because you already deducted the gift, and the money is the sponsor’s now.

Is a QCD the same as taking my RMD?

No, but a QCD counts toward your RMD. Counts toward your RMD for the year.2829 The QCD part is left out of income. Any RMD you take as a regular withdrawal is taxed.

A QCD counts in the year the IRA firm pays it.67 The first dollars out of your IRA each year count toward your RMD.67 By my reading, a taxable withdrawal taken earlier in the year can’t be turned into a QCD later.67

So a later QCD only counts toward the part of the RMD that is left. It is still left out of income.

How does a DAF compare with a family foundation?

A DAF has better tax caps. A family foundation gives more control. Cash gifts to most foundations face a lower cap than cash to a DAF.5053 A QCD can’t go to most foundations. A public charity, not a donor-advised fund, supporting organization or most private foundations.12

Most private foundations, the non-operating kind, must pay out about 5% of their investment assets each year.68 No such rule applies to a donor-advised fund.68 A private foundation also pays a 1.39% tax on its net investment income each year.69

The full side-by-side is on the DAF page.

How does a DAF compare with a charitable trust?

They do different jobs. A DAF gives everything to charity. A charitable remainder trust pays you, or people you name, income first. What’s left then goes to charity. A CRAT (a charity trust that pays you the same dollar amount every year) and a CRUT (a charity trust that pays you a set percent of its value, so payments go up and down) pay differently: CRAT: a fixed amount; CRUT: a set percent of each year's value.70717273. A gift annuity works in a similar way. See charitable trusts.

What happens to a DAF when the owner dies?

The sponsor’s rules decide. Most let you name people to keep suggesting grants, or charities to get what’s left. See what happens to a DAF at death.

Common mistakes

  • Asking your IRA to send a QCD to your DAF. It’s taxed, not a QCD. A public charity, not a donor-advised fund, supporting organization or most private foundations.12
  • Counting on a bill. Plans to allow QCDs to DAFs aren’t law. 20
  • Taking the RMD, then giving cash to a DAF. The RMD stays in AGI, and the gift only helps if you itemize.
  • Taking money out first and giving later. Counts in the year the IRA firm pays it.67 So the earlier withdrawal stays taxable.
  • Giving cash to a DAF while you own shares that have grown. If you would have sold those shares anyway, giving cash instead gives up the tax savings on the gain.

Sources (73)

Show

  1. The recipient must be a § 170(b)(1)(A) organization. Donor-advised funds and § 509(a)(3) supporting organizations are excluded by statute. Private non-operating foundations are excluded because they are not § 170(b)(1)(A) organizations (only foundations described in § 170(b)(1)(F) — operating, pass-through, and pooled-fund — are listed).

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)(other than any organization described in section 509(a)(3) or any fund or account described in section 4966(d)(2)) Checked 2026-10-09.
    • IRS Notice 2007-7, A-35other than supporting organizations described in § 509(a)(3) or donor advised funds that are described in § 4966(d)(2). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)(vii)(vii) a private foundation described in subparagraph (F), Checked 2026-10-09.

  2. A 'charitable contribution' under § 170(c)(2) must go to an organization created or organized in the United States or a possession, or under US, state or DC law. Because a QCD must be one for which a deduction for the entire distribution would be allowable under § 170, a gift paid directly to a foreign organization generally cannot be a QCD.

    • 26 U.S.C. § 170 (LII), § 170(c)(2)(A)(A) created or organized in the United States or in any possession thereof, or under the law of the United States Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(C)only if a deduction for the entire distribution would be allowable under section 170 Checked 2026-10-10.

  3. A QCD is a distribution from an IRA made directly by the IRA trustee to an eligible charity. The statute and IRS guidance say nothing about the payment method (check, wire, electronic transfer) beyond that the trustee must make it directly to the charity. Money paid to the owner first is not paid directly to the charity.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p))— (i) which is made directly by the trustee to an organization described in section 170(b)(1)(A) Checked 2026-10-10.
    • IRS Publication 590-B (2025), Ch. 2, Qualified charitable distributions (QCDs)A QCD is generally a nontaxable distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. Checked 2026-10-10.

  4. The IRA trustee must pay the charity directly; a distribution paid to the owner and then donated is not a QCD. (Whether a check the owner writes from an IRA checkbook counts is not addressed by this source — see rw-qb-check-from-ira-a41.)

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)which is made directly by the trustee to an organization described in section 170(b)(1)(A) Checked 2026-10-09.
    • IRS Notice 2007-7, A-41will be considered a direct payment by the IRA trustee to the charitable organization for purposes of § 408(d)(8)(B)(i). Checked 2026-10-09.

  5. IRS Notice 2007-7 treats a check from an IRA, made payable to an eligible charity and delivered by the IRA owner, as a direct payment by the IRA trustee. The notice does not say whether this covers a check the owner writes personally on an IRA checkbook, and no fetched IRS text addresses owner-written IRA checkbook checks.

    • IRS Notice 2007-7, Q-41/A-41If a check from an IRA is made payable to a charitable organization described in § 408(d)(8) and delivered by the IRA owner to the charitable organization, the payment to the charitable organization will be considered a direct payment by the IRA trustee to the charitable organization for purposes of § 408(d)(8)(B)(i). Checked 2026-10-10.

  6. Once in a lifetime, a QCD may fund a charitable remainder annuity trust, charitable remainder unitrust, or charitable gift annuity, if the entity is funded only by QCDs, only the owner and/or spouse hold the (nonassignable) income interest, and a CGA starts fixed payments of 5% or more within 1 year. The limit is $53,000 (2024), $54,000 (2025), $55,000 (2026) and counts within the annual QCD limit. Payments received are ordinary income. A statement must be attached to the return.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(i)(I)an election is not in effect under this subparagraph for a preceding taxable year Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(ii)(III)commences fixed payments of 5 percent or greater not later than 1 year from the date of funding. Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(iv)no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained, the spouse of such individual, or both Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(v)(I)shall be treated as ordinary income in the hands of the beneficiary Checked 2026-10-09.
    • IRS Notice 2023-75 (2024 limits), Section 408(d)(8)(F) paragraphis increased from $50,000 to $53,000. Checked 2026-10-09.
    • IRS Notice 2024-80 (2025 limits), Section 408(d)(8)(F) paragraphis increased from $53,000 to $54,000. Checked 2026-10-09.
    • IRS Notice 2025-67 (2026 limits), Section 408(d)(8)(F) paragraphfrom $54,000 to $55,000. Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Line 4a/4b, Exception 3This includes any amount (up to $54,000) of a one-time QCD to a split-interest entity (SIE). Checked 2026-10-09.

  7. The statute sets the one-time split-interest QCD amount at $50,000; the provision (SECURE 2.0 § 307) applies to distributions in taxable years beginning after December 29, 2022, so $50,000 was the 2023 amount. It is inflation-indexed for years after 2023 ($53,000 for 2024, $54,000 for 2025, $55,000 for 2026).

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(i)(II)the aggregate amount of distributions of the taxpayer with respect to which an election under this subparagraph is made does not exceed $50,000 Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), Effective date note, Pub. L. 117-328, div. T, § 307(c)shall apply to distributions made in taxable years beginning after the date of the enactment of this Act Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(G)(i)In the case of any taxable year beginning after 2023, each of the dollar amounts in subparagraphs (A) and (F) shall be increased Checked 2026-10-10.

  8. To report the one-time split-interest QCD, check box 3 on Form 1040 line 4c, enter "SIE", and attach a statement covering no prior election, that only the owner and/or spouse hold the income interest, that it is nonassignable, and the amount.

  9. To deduct charitable contributions in the ordinary way, an individual must itemize on Schedule A.

    • IRS Publication 526 (2025), DeductionsGenerally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040). Checked 2026-10-09.

  10. No itemized deduction is allowed unless the individual elects to itemize for the year; the taxpayer takes either itemized deductions or the standard deduction.

    • 26 U.S.C. § 63 (LII), § 63(e)(1)Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. Checked 2026-10-10.

  11. Itemized deductions (including the ordinary charitable deduction) are, by definition, deductions other than those allowable in arriving at adjusted gross income, so they reduce taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(d)the term “ itemized deductions ” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income Checked 2026-10-10.

  12. AGI is gross income minus the deductions listed in § 62(a). Itemized deductions are, by definition, the deductions other than those allowable in arriving at AGI, and taxable income is gross income minus the deductions allowed. So an itemized charitable deduction (including one for a gift to a donor-advised fund or of appreciated stock) reduces taxable income but not AGI, and therefore not MAGI measures built on AGI, such as the IRMAA MAGI (AGI plus tax-exempt interest).

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term “adjusted gross income” means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(d)For purposes of this subtitle, the term “itemized deductions” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income, and (2) any deduction referred to in any paragraph of subsection (b). Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(a)Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction). Checked 2026-10-10.

  13. Starting in 2026, itemized charitable deductions are allowed only to the extent total contributions exceed 0.5% of the taxpayer's contribution base (AGI). Disallowed amounts may carry forward only in limited circumstances (new § 170(d)(1)(C) — not reviewed).

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Effective date note, P.L. 119-21 § 70425(c)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  14. The 0.5% floor applies to charitable contributions 'otherwise allowable (without regard to this subparagraph)' as a deduction, i.e., read here as the amount allowable after the percentage-of-AGI limits. This ordering is the reviewer's reading of the statute text; no IRS worked example was located.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base for the taxable year. Checked 2026-10-09.

  15. The 0.5% floor is applied first against 20%-limit capital gain gifts, then 30% capital gain gifts, then 30%-limit (other) gifts, then conservation gifts, then 50% gifts, and last against 60% cash gifts.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)(i)first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof, Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)(vi)sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof. Checked 2026-10-09.

  16. Beginning in 2026, taxpayers who do not itemize may deduct up to $1,000 ($2,000 joint) of cash gifts to § 170(b)(1)(A) public charities, excluding gifts to supporting organizations and donor-advised funds.

    • 26 U.S.C. § 170 (LII), § 170(p)the deduction under this section shall be equal to the deduction, not in excess of 1,000 ($2,000 in the case of a joint return) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Amendment note, P.L. 119-21 § 70424(a)substituted “$1,000 ($2,000” for “$300 ($600” Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Effective date note, P.L. 119-21 § 70424(b)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  17. The non-itemizer deduction counts only cash contributions made during the year to § 170(b)(1)(A) organizations, not to § 509(a)(3) supporting organizations or for a new or existing donor-advised fund, and is computed without carryovers and without the 0.5% floor.

    • 26 U.S.C. § 170 (LII), § 170(p)which would be determined under this section if the only charitable contributions taken into account in determining such deduction were contributions made in cash during such taxable year (determined without regard to subsections (b)(1)(G)(ii), (b)(1)(I), and (d)(1)) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(p)(1)-(2)to an organization described in section 509(a)(3), or (2) for the establishment of a new, or maintenance of an existing, donor advised fund Checked 2026-10-09.

  18. The § 170(p) deduction for non-itemizers (cash gifts, beginning 2026) does not apply to contributions for the establishment or maintenance of a donor-advised fund, or to § 509(a)(3) supporting organizations.

    • 26 U.S.C. § 170 (LII), § 170(p)(2)(2) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) ). Checked 2026-10-09.

  19. For a taxpayer who does not itemize, taxable income is AGI minus the standard deduction and other listed deductions, including the § 170(p) non-itemizer charitable deduction. That deduction therefore reduces taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(b)the term “ taxable income ” means adjusted gross income , minus— (1) the standard deduction , (2) the deduction for personal exemptions provided in section 151, (3) any deduction provided in section 199A, (4) the deduction provided in section 170(p), Checked 2026-10-09.

  20. Two bills in the 119th Congress would allow QCDs to donor-advised funds by striking the DAF exclusion from § 408(d)(8)(B)(i): H.R. 2891 (introduced 2025-04-10, referred to House Ways and Means) and S. 3975 (introduced 2026-03-03, referred to Senate Finance). As of 2026-10-10, Congress.gov shows no action on either beyond committee referral. Neither is law.

  21. Both pending bills that would let QCDs go to donor-advised funds apply only to distributions made after the date of enactment. H.R. 2891 Sec. 2(b) and S. 3975 Sec. 2(b) each say the amendment applies to distributions after the date of enactment of the Act.

  22. Each bill's own Sec. 2(a) strikes only the donor-advised-fund phrase from § 408(d)(8)(B)(i). H.R. 2891 (119th Congress, short title "IRA Charitable Rollover Facilitation and Enhancement Act of 2025") and S. 3975 (119th Congress, short title "IRA Charitable Rollover Facilitation and Enhancement Act of 2026") use identical operative text. Because neither bill touches the parallel exclusion of § 509(a)(3) supporting organizations in the same parenthetical, supporting organizations would remain excluded if either bill passed as introduced.

  23. The IRA owner (or beneficiary) must be at least age 70½ on the date the distribution is made. This age was not changed when the RMD starting age rose to 73 (and later 75); QCD eligibility can begin years before RMDs are required.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(ii)which is made on or after the date that the individual for whose benefit the plan is maintained has attained age 70½ Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, Qualified charitable distributions (QCDs)You must be at least age 70½ when the distribution is made. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 1, Required beginning date FAQYou must begin receiving required minimum distributions by April 1 of the year following the year you reach age 73. Checked 2026-10-09.

  24. QCDs may come from a traditional IRA, an inherited IRA if the beneficiary is 70½. Only an amount that would otherwise be includible in gross income can be a QCD (§ 408(d)(8)(B)), so a qualified (tax-free) Roth IRA distribution cannot be one. A SEP or SIMPLE IRA is eligible only if it is not "ongoing" — i.e., no employer contribution for the plan year ending with or within the tax year. 401(k), 403(b) and other employer plans are not IRAs and cannot make QCDs.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p)) Checked 2026-10-09.
    • IRS Notice 2007-7, A-36that is neither an ongoing SEP IRA described in § 408(k) nor an ongoing SIMPLE IRA described in § 408(p). Checked 2026-10-09.
    • IRS Notice 2007-7, A-37is available for distributions from an IRA maintained for the benefit of a beneficiary after the death of the IRA owner if the beneficiary has attained age 70½ Checked 2026-10-09.
    • Instructions for Forms 1099-R and 5498 (current online version, covers 2026), Box 7a, Qualified charitable distributions (QCDs)Code 4 for a QCD from an inherited (death distribution) IRA Checked 2026-10-09.

  25. A SEP or SIMPLE IRA is 'ongoing' (and cannot make a QCD) if an employer contribution is made for the plan year ending with or within the owner's tax year. SIMPLE salary-reduction deferrals are made as elective employer contributions, so money deferred from your own pay into a SIMPLE IRA makes it ongoing.

    • IRS Notice 2007-7, A-36a SEP IRA or a SIMPLE IRA is treated as ongoing if it is maintained under an employer arrangement under which an employer contribution is made for the plan year ending with or within the IRA owner's taxable year in which the charitable contributions would be made. Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(p)(2)(A)(i)as elective employer contributions to a simple retirement account on behalf of the employee Checked 2026-10-10.

  26. A QCD is excluded from gross income and cannot also be claimed as a charitable deduction. Only the portion that would otherwise be taxable can be a QCD; when an IRA has nondeductible basis, the QCD is treated as coming first from the taxable (pre-tax) money, overriding the normal pro-rata rule.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(E)shall not be taken into account in determining the deduction under section 170. Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B), flush languageA distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A). Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(D)Notwithstanding section 72, in determining the extent to which a distribution is a qualified charitable distribution Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsIf your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsYou can't claim a charitable contribution deduction for any QCD not included in your income. Checked 2026-10-09.

  27. Adjusted gross income means, for an individual, gross income minus the deductions listed in § 62(a), so an amount excluded from gross income never enters AGI.

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term "adjusted gross income" means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-12.

  28. A QCD counts toward the IRA owner's (or beneficiary's) required minimum distribution for the year.

    • IRS Publication 590-B (2025), Ch. 1, Required minimum distributions noteA qualified charitable distribution will count towards your required minimum distribution. Checked 2026-10-09.
    • IRS Notice 2007-7, A-42The amount distributed in a qualified charitable distribution is an amount distributed from the IRA for purposes of §§ 408(a)(6), 408(b)(3), and 408A(c)(5). Checked 2026-10-09.

  29. Distributing more than the RMD in one year (including through a QCD larger than the RMD) does not create a credit toward future years' RMDs.

    • IRS Publication 590-B (2025), Ch. 1, Miscellaneous Rules for Required Minimum Distributions, More than minimum receivedIf, in any year, you receive more than the required minimum amount for that year, you won't receive credit for the additional amount when determining the minimum required amounts for future years. Checked 2026-10-09.

  30. The RMD applicable age is 73 for an individual who attains age 72 after 2022 and age 73 before 2033, and 75 for an individual who attains age 74 after 2032 (generally, people born in 1960 or later). Read literally, people born in 1959 fit both clauses; the statute's text does not resolve that overlap.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)(I) In the case of an individual who attains age 72 after December 31, 2022 , and age 73 before January 1, 2033 , the applicable age is 73. (II) In the case of an individual who attains age 74 after December 31, 2032 , the applicable age is 75. Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Lines 4a and 4b, More than one distributionYou must start receiving at least a minimum amount from your traditional IRA by April 1 of the year following the year you reach age 73. Checked 2026-10-09.

  31. The 73 applicable age applies to individuals who attain age 72 after December 31, 2022 (born in 1951 or later); 75 applies to those who attain 74 after 2032. So the 73/75 RMD start ages apply to people born in 1951 or later.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)In the case of an individual who attains age 74 after December 31, 2032, the applicable age is 75. Checked 2026-10-10.
    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)(I)the applicable age is 73 Checked 2026-10-10.

  32. Required distributions to a beneficiary of an inherited account are triggered by the owner's death, not by the beneficiary's own age: where distributions had begun, the remaining interest must continue to be distributed at least as rapidly as before the death, and the life-expectancy exception requires distributions to begin no later than one year after the death. The applicable age of 73 or 75 in § 401(a)(9)(C)(v) sets the required beginning date for the individual for whose benefit the plan is maintained, not for a beneficiary.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(B)(i)the employee dies before his entire interest has been distributed to him, the remaining portion of such interest will be distributed at least as rapidly as under the method of distributions being used under subparagraph (A)(ii) as of the date of his death Checked 2026-10-11.
    • 26 U.S.C. § 401 (LII), § 401(a)(9)(B)(iii)(III)such distributions begin not later than 1 year after the date of the employee's death or such later date as the Secretary may by regulations prescribe Checked 2026-10-11.
    • IRS Notice 2007-7, A-37is available for distributions from an IRA maintained for the benefit of a beneficiary after the death of the IRA owner if the beneficiary has attained age 70½ Checked 2026-10-09.

  33. The annual QCD exclusion was $100,000 through 2023 and is inflation-indexed for tax years beginning after 2023 (SECURE 2.0 § 307), rounded to the nearest $1,000: $105,000 for 2024, $108,000 for 2025, $111,000 for 2026.

  34. The limit applies per IRA owner. On a joint return each spouse may exclude up to the limit, but only from IRAs that spouse owns; one spouse cannot use the other's unused limit.

    • IRS Publication 590-B (2025), Ch. 2, QCDsIf you file a joint return, your spouse can also have a QCD and exclude up to $108,000. Checked 2026-10-09.
    • IRS Notice 2007-7, A-34For married individuals filing a joint return, the limit is $100,000 per individual IRA owner. Checked 2026-10-09.

  35. The QCD exclusion cap applies to the aggregate amount of qualified charitable distributions with respect to a taxpayer during a taxable year, not per account.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A)So much of the aggregate amount of qualified charitable distributions with respect to a taxpayer made during any taxable year which does not exceed $100,000 shall not be includible in gross income of such taxpayer for such taxable year. Checked 2026-10-09.

  36. Under Rev. Rul. 78-197 (in which the IRS announced it would follow Palmer v. Commissioner, 62 T.C. 684 (1974)), the IRS treats the proceeds of a sale or redemption of donated stock as the donor's income only if the charity is legally bound, or can be compelled, to give up the shares at the time of the gift. A charity that is merely expected to sell is not enough; a charity that is bound to sell shifts the gain back to the donor (assignment of income).

  37. A donor-advised fund (§ 4966(d)(2)) is a fund or account that is separately identified by reference to a donor's contributions, is owned and controlled by a sponsoring organization, and over which the donor (or the donor's appointee) has or reasonably expects to have advisory privileges over distributions or investments because of being a donor. Once the donor contributes, the sponsoring organization has legal control.

    • 26 U.S.C. § 4966 (LII), § 4966(d)(2)(A)(i)which is separately identified by reference to contributions of a donor or donors, Checked 2026-10-09.
    • 26 U.S.C. § 4966 (LII), § 4966(d)(2)(A)(iii)has, or reasonably expects to have, advisory privileges with respect to the distribution or investment of amounts held in such fund or account by reason of the donor’s status as a donor. Checked 2026-10-09.
    • IRS: Donor-advised funds, Overview paragraphOnce the donor makes the contribution, the organization has legal control over it. Checked 2026-10-09.

  38. A DAF's sponsoring organization must be a § 170(c) organization that is not a private foundation. Because the sponsor is a public charity, a contribution to a DAF is a gift to a public charity for deduction-limit purposes (inference from the definition plus § 170(b)(1)(A)).

    • 26 U.S.C. § 4966 (LII), § 4966(d)(1)(B)is not a private foundation (as defined in section 509(a) ), and Checked 2026-10-09.
    • IRS: Donor-advised funds, Overview paragraphmaintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization Checked 2026-10-09.

  39. A contribution to a DAF is deductible only if the sponsor is not a war veterans' organization, fraternal society, or nonprofit cemetery company (or certain type III supporting organizations) and the donor obtains a contemporaneous written acknowledgment that the sponsor has exclusive legal control over the contributed assets.

    • 26 U.S.C. § 170 (LII), § 170(f)(18)(B)the taxpayer obtains a contemporaneous written acknowledgment (determined under rules similar to the rules of paragraph (8)(C)) from the sponsoring organization (as so defined) of such donor advised fund that such organization has exclusive legal control over the assets contributed. Checked 2026-10-09.
    • IRS Publication 526 (2025), Contributions to Donor-Advised FundsThe qualified organization that sponsors the fund is a war veterans’ organization, a fraternal society, or a nonprofit cemetery company; or Checked 2026-10-09.

  40. Any distribution from a donor-advised fund to a natural person is a 'taxable distribution' under § 4966(c)(1)(A), and § 4966(a)(1) imposes a 20% tax on the sponsoring organization for each taxable distribution. In practice, DAF grants go to charities, not to individuals (including family members).

    • 26 U.S.C. § 4966 (LII), § 4966(c)(1)(A)The term “ taxable distribution ” means any distribution from a donor advised fund— (A) to any natural person, Checked 2026-10-10.
    • 26 U.S.C. § 4966 (LII), § 4966(a)(1)There is hereby imposed on each taxable distribution a tax equal to 20 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the sponsoring organization with respect to the donor advised fund. Checked 2026-10-10.

  41. Medicare IRMAA is determined from MAGI, defined as AGI plus tax-exempt interest, generally from the tax return two years before the premium year (2026 premiums generally use 2024 returns).

  42. IRMAA is based on modified AGI = AGI (Form 1040 line 11) plus tax-exempt interest, using the most recent tax data IRS can provide: generally the return from two years before the premium year (2026 premiums generally use 2024 returns), but not more than three years prior.

    • SSA POMS HI 01101.010 (12/02/2025), A.1the beneficiary’s adjusted gross income (AGI) (found on line 11 of the Internal Revenue Service (IRS) tax filing form 1040), plus • tax-exempt interest income (line 2a of IRS Form 1040). Checked 2026-10-09.
    • SSA POMS HI 01101.010 (12/02/2025), A.2Generally, the information is from two years prior to the year for which the premium is being determined, but not more than three years prior. For example, 2026 premiums are generally based on 2024 tax return information. Checked 2026-10-09.

  43. IRMAA is assessed per Medicare beneficiary: each enrolled beneficiary whose MAGI is above the threshold for their tax filing status pays an IRMAA; the joint-filer threshold is a single figure for the joint return.

    • SSA POMS HI 01101.001, A.1and have modified adjusted gross income (MAGI), (see HI 01101.010 ) above the threshold for their tax filing status pay an IRMAA in addition to the monthly premium. Checked 2026-10-09.
    • SSA POMS HI 01101.010, BMarried, filing jointly $194,000 $206,000 $212,000 $218,000 Checked 2026-10-09.

  44. Whether, and how much of, Social Security benefits are taxable depends on modified adjusted gross income plus one-half of benefits compared with a base amount; that modified AGI starts from adjusted gross income (increased by tax-exempt interest). Income excluded from AGI, such as a QCD, therefore does not enter the test.

    • 26 U.S.C. § 86 (LII), § 86(b)(1)the modified adjusted gross income of the taxpayer for the taxable year, plus (ii) one-half of the social security benefits received during the taxable year, exceeds (B) the base amount Checked 2026-10-09.
    • 26 U.S.C. § 86 (LII), § 86(b)(2)increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax. Checked 2026-10-09.

  45. To test whether Social Security benefits are taxable, compare one-half of benefits plus all other income (including tax-exempt interest) with a base amount for the filing status; above it, part of benefits may be taxable, generally up to 50%, and up to 85% above a second, higher amount. The base amounts are fixed dollar figures (not inflation-indexed in the publication).

    • IRS Publication 915 (2025), Are Any of Your Benefits Taxable?compare the base amount (explained later) for your filing status with the total of: One-half of your benefits; plus All your other income, including tax-exempt interest. Checked 2026-10-09.
    • IRS Publication 915 (2025), Base amountYour base amount is: $25,000 if you are single, head of household, or qualifying surviving spouse; Checked 2026-10-09.
    • IRS Publication 915 (2025), Maximum taxable partGenerally, up to 50% of your benefits will be taxable. However, up to 85% of your benefits can be taxable if either of the following situations applies to you. The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Checked 2026-10-09.

  46. For 2025 through 2028, each taxpayer (and spouse on a joint return) age 65+ by year end gets an extra $6,000 deduction, available whether or not they itemize, reduced by 6% of modified AGI above $75,000 ($150,000 joint). Married couples must file jointly; a valid SSN is required.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(i)In the case of a taxable year beginning before January 1, 2029 , there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual Checked 2026-10-09.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(I)shall be reduced (but not below zero) by 6 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VYou can claim this deduction whether you claim the standard deduction or itemize deductions Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VIf you are married, you must file a joint return with your spouse to claim this deduction. Checked 2026-10-09.

  47. On Schedule 1-A, the 6% phaseout of the senior deduction is computed once from modified AGI and subtracted from each qualifying spouse's $6,000 separately; the two reduced amounts are then added. On a joint return, each $1,000 of MAGI above the threshold therefore reduces the couple's combined senior deduction by $120.

  48. The senior deduction's 'qualified individual' is the taxpayer (and, on a joint return, the spouse) who has attained age 65 before the close of the taxable year; the qualified individual's Social Security number must be on the return; married individuals must file jointly; the phaseout uses AGI increased only by foreign-income exclusions (§§ 911, 931, 933), so income excluded from gross income, such as a QCD, does not count.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(ii)the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and (II) in the case of a joint return, the taxpayer’s spouse, if such spouse has attained age 65 before the close of the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(II)the term “ modified adjusted gross income ” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iv)(I)Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual ’s social security number on the return of tax for the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(v)this subparagraph shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. Checked 2026-10-10.

  49. 2026 standard deduction: $32,200 married filing jointly, $16,100 single or married filing separately, $24,150 head of household. Additional amount for age 65+ or blind: $1,650 per qualifying person if married, $2,050 if unmarried and not a surviving spouse. (2025 under OBBBA: $31,500 / $15,750 / $23,625.)

  50. Cash gifts to § 170(b)(1)(A) organizations are limited to 60% of the contribution base (reduced by other § 170(b)(1)(A) contributions). P.L. 119-21 § 70425(b)(1) rewrote the provision and removed the prior 'before January 1, 2026' end date, so the 60% limit no longer sunsets.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(i) (as amended)For taxable years beginning after December 31, 2017 , any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(i)(I)60 percent of the taxpayer’s contribution base for the taxable year, over Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Amendment note, 2025—Subsec. (b)(1)(G)(i)Pub. L. 119–21, § 70425(b)(1) , amended cl. (i) generally. Prior to amendment, text read as follows: “In the case of any contribution of cash to an organization described in subparagraph (A), the total amount of such contributions which may be taken into account under subsection (a) for any taxable year beginning after December 31, 2017 , and before January 1, 2026 , shall not exceed 60 percent Checked 2026-10-09.

  51. Long-term appreciated capital-gain property given to a public charity is generally deductible at fair market value, limited to 30% of AGI; cash gifts to public charities are limited to 60% of AGI. Excess carries forward up to 5 years. Property held 1 year or less (ordinary income property) is limited to basis because the deduction is reduced by gain that would not be long-term.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(i)shall not exceed 30 percent of the taxpayer’s contribution base for such year. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(i)(I) 60 percent of the taxpayer’s contribution base for the taxable year Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(d)(1)(A)paid in each of the 5 succeeding taxable years in order of time Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(1)(A)the amount of gain which would not have been long-term capital gain Checked 2026-10-09.
    • IRS Publication 526 (2025), Ordinary Income Propertycapital assets (defined later, under Capital Gain Property ) held 1 year or less. Checked 2026-10-09.

  52. Contributions to § 170(b)(1)(A) organizations (public charities, and the operating/pass-through/pooled private foundations described in § 170(b)(1)(F)) are generally limited to 50% of the contribution base, before the special 60% cash rule and the 30% capital-gain-property rule.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A), flush languageshall be allowed to the extent that the aggregate of such contributions does not exceed 50 percent of the taxpayer’s contribution base for the taxable year. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)(vii)a private foundation described in subparagraph (F), Checked 2026-10-09.

  53. Contributions to organizations not described in § 170(b)(1)(A) (for example, most private non-operating foundations) are limited to the lesser of 30% of the contribution base or the remaining room under the 50% limit.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(B)Any charitable contribution other than a charitable contribution to which subparagraph (A) or (G) applies shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of— Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(B)(i)30 percent of the taxpayer’s contribution base for the taxable year, or Checked 2026-10-09.

  54. Gifts to organizations not covered by § 170(b)(1)(A), such as most private non-operating foundations, are deductible up to 30% of the contribution base (lower than the 60% cash limit for public charities, including DAF sponsors).

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(B)Any charitable contribution other than a charitable contribution to which subparagraph (A) or (G) applies shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of— (i) 30 percent of the taxpayer’s contribution base for the taxable year Checked 2026-10-10.

  55. Gifts of capital gain property to organizations not described in § 170(b)(1)(A) (e.g., most private non-operating foundations) are limited to the lesser of 20% of the contribution base or 30% less capital gain property gifts under § 170(b)(1)(C), and are counted last.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(D)(i)(I)20 percent of the taxpayer’s contribution base for the taxable year, or Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(D)(i), flush languageFor purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions . Checked 2026-10-09.

  56. Gifts of long-term capital gain property to § 170(b)(1)(A) organizations (deducted at fair market value) are limited to 30% of the contribution base and are counted after other contributions except 20%-limit gifts.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(i)For purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions (other than charitable contributions to which subparagraph (D) applies). Checked 2026-10-09.

  57. The 30%-of-AGI limit on capital gain property given to public charities is applied after all other charitable contributions (other than those under § 170(b)(1)(D)); the excess carries forward 5 years.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(i)contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(ii)such excess shall be treated, in a manner consistent with the rules of subsection (d)(1), as a charitable contribution of capital gain property to which clause (i) applies in each of the 5 succeeding taxable years in order of time. Checked 2026-10-09.

  58. Starting in 2026, taxpayers in the 37% bracket have itemized deductions (including charitable) reduced by 2/37 of the lesser of total itemized deductions or taxable income above the 37% bracket threshold — effectively capping the tax value of a deduction at 35 cents per dollar. The "35% cap" is a shorthand, not statutory language.

    • 26 U.S.C. § 68 (LII), § 68(a)shall be reduced by 2 ⁄ 37 of the lesser of Checked 2026-10-09.
    • 26 U.S.C. § 68 (LII), Effective date note, P.L. 119-21 § 70111(c)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  59. The § 68 reduction is 2/37 of the lesser of (1) itemized deductions or (2) taxable income, computed before § 68 and increased by itemized deductions, above the start of the 37% bracket. It is applied after every other limitation on itemized deductions (including the 0.5% floor and the AGI percentage limits).

    • 26 U.S.C. § 68 (LII), § 68(a)(2)so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions ) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer. Checked 2026-10-09.
    • 26 U.S.C. § 68 (LII), § 68(b)This section shall be applied after the application of any other limitation on the allowance of any itemized deduction. Checked 2026-10-09.

  60. 2026 federal income tax brackets (ordinary income). Married filing jointly: 10% to $24,800; 12% to $100,800; 22% to $211,400; 24% to $403,550; 32% to $512,450; 35% to $768,700; 37% above. Single: 10% to $12,400; 12% to $50,400; 22% to $105,700; 24% to $201,775; 32% to $256,225; 35% to $640,600; 37% above.

    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Not over $24,800 10% of the taxable income Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $24,800 but not over $100,800 $2,480 plus 12% of the excess over $24,800 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $100,800 but not over $211,400 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $211,400 but not over $403,550 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $403,550 but not over $512,450 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $512,450 but not over $768,700 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Not over $12,400 10% of the taxable income Over $12,400 but not over $50,400 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $50,400 but not over $105,700 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $105,700 but not over $201,775 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $201,775 but not over $256,225 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $256,225 but not over $640,600 Checked 2026-10-09.

  61. An amount disallowed by the 0.5% floor carries forward only from a year in which a percentage limit is also exceeded (so that an excess is carried forward anyway); in that case the floor-disallowed amount is added to the carryover. In a year where the AGI limits are not exceeded, the floor-disallowed amount is simply lost.

    • 26 U.S.C. § 170 (LII), § 170(d)(1)(C), headingContributions disallowed by 0.5-percent floor carried forward only from years in which limitation is exceeded Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(d)(1)(C)(i)In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule , the applicable carryover rule shall be applied by increasing the excess Checked 2026-10-09.

  62. Under § 170(d)(1)(C), in a year from which an excess is carried forward under a carryover rule (determined without regard to the floor), that carryover is increased by the amount attributable to the contributions to which that rule applies that was disallowed by the 0.5% floor. Floor-disallowed amounts attributable to a category with no excess are not added.

    • 26 U.S.C. § 170 (LII), § 170(d)(1)(C)(i)In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule , the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I). Checked 2026-10-09.

  63. A charitable deduction is allowed for the taxable year in which the contribution is paid. For a DAF, that is the year the donor contributes to the fund, regardless of when grants are later made to charities (grants are distributions by the sponsor, not contributions by the donor).

    • 26 U.S.C. § 170 (LII), § 170(a)(1)There shall be allowed as a deduction any charitable contribution (as defined in subsection (c)) payment of which is made within the taxable year. Checked 2026-10-09.
    • IRS: Donor-advised funds, Overview paragraphOnce the donor makes the contribution, the organization has legal control over it. Checked 2026-10-09.

  64. A gift counts in the year it is unconditionally delivered: a mailed check in the year it is mailed, and a gift charged to a bank credit card in the year of the charge.

  65. A charitable contribution is ordinarily made when delivery is effected. A check counts on the date mailed or delivered if it clears; a stock certificate delivered to the donor's own bank or broker (as the donor's agent) or to the issuer for transfer is a completed gift only on the date the stock is transferred on the corporation's books.

    • 26 CFR § 1.170A-1 (LII), § 1.170A-1(b)Ordinarily, a contribution is made at the time delivery is effected. The unconditional delivery or mailing of a check which subsequently clears in due course will constitute an effective contribution on the date of delivery or mailing. Checked 2026-10-10.
    • 26 CFR § 1.170A-1 (LII), § 1.170A-1(b)If the donor delivers the stock certificate to his bank or broker as the donor's agent, or to the issuing corporation or its agent, for transfer into the name of the donee , the gift is completed on the date the stock is transferred on the books of the corporation . Checked 2026-10-10.

  66. An endorsed stock certificate is delivered on mailing; if handed to the donor's agent or the issuer for transfer, the gift is not complete until transfer on the corporation's books.

    • IRS Publication 526 (2025), When To Deduct, Stock certificateA properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity’s agent. However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution isn’t delivered until the date the stock is transferred on the books of the corporation. Checked 2026-10-09.

  67. QCDs count for the calendar year in which the trustee makes the distribution (exclusion is per taxable year). Under the RMD rules, the first amounts distributed in a year are treated as the RMD, so a taxable withdrawal taken earlier in the year satisfies the RMD and cannot be converted into a QCD by a later charitable distribution.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A)made during any taxable year which does not exceed Checked 2026-10-09.
    • 26 CFR § 1.402(c)-2 (LII), § 1.402(c)-2(f)(2)(i) examplethe first $5,000 distributed will be treated as the required minimum distribution and will not be an eligible rollover distribution Checked 2026-10-09.

  68. A private (non-operating) foundation must pay out a distributable amount built on a minimum investment return of 5% of its non-charitable-use assets each year (§ 4942). No similar rule applies to a donor-advised fund.

    • 26 U.S.C. § 4942 (LII), § 4942(e)(1)the minimum investment return for any private foundation for any taxable year is 5 percent of the excess of— (A) the aggregate fair market value of all assets of the foundation other than those which are used (or held for use) directly in carrying out the foundation’s exempt purpo Checked 2026-10-10.

  69. A tax-exempt private foundation pays a 1.39% excise tax on its net investment income each year (§ 4940(a)).

    • 26 U.S.C. § 4940 (LII), § 4940(a)There is hereby imposed on each private foundation which is exempt from taxation under section 501(a) for the taxable year, with respect to the carrying on of its activities, a tax equal to 1.39 percent of the net investment income of such foundation for the taxable year. Checked 2026-10-10.

  70. A charitable remainder annuity trust (CRAT) pays a fixed sum each year of at least 5% and no more than 50% of the initial net fair market value of the trust property, at least annually, for life or lives of individuals living when the trust is created or for a term of no more than 20 years; the remainder goes to charity.

    • 26 U.S.C. § 664 (LII), § 664(d)(1)(A)a sum certain (which is not less than 5 percent nor more than 50 percent of the initial net fair market value of all property placed in trust) is to be paid, not less often than annually Checked 2026-10-09.
    • 26 U.S.C. § 664 (LII), § 664(d)(1)(A)for a term of years (not in excess of 20 years) or for the life or lives of such individual or individuals Checked 2026-10-09.
    • IRS: Charitable remainder trusts, Types of charitable remainder trustsA charitable remainder annuity trust (CRAT) pays a specific dollar amount each year. Checked 2026-10-09.

  71. A charitable remainder unitrust (CRUT) pays a fixed percentage, at least 5% and no more than 50%, of the trust's net fair market value revalued every year, so payments rise and fall with the trust's value.

    • 26 U.S.C. § 664 (LII), § 664(d)(2)(A)a fixed percentage (which is not less than 5 percent nor more than 50 percent) of the net fair market value of its assets, valued annually Checked 2026-10-09.
    • IRS: Charitable remainder trusts, Types of charitable remainder trustsThe payments generally must equal at least 5% and no more than 50% of the fair market value of the assets, valued annually. Checked 2026-10-09.

  72. A charitable remainder unitrust's payments, like a charitable remainder annuity trust's, may run only for a term of years not in excess of 20 years, or for the life or lives of individuals living when the trust is created.

    • 26 U.S.C. § 664 (LII), § 664(d)(2)(A)for a term of years (not in excess of 20 years) or for the life or lives of such individual or individuals Checked 2026-10-11.
    • 26 U.S.C. § 664 (LII), § 664(d)(2)(A)from which a fixed percentage (which is not less than 5 percent nor more than 50 percent) of the net fair market value of its assets, valued annually, is to be paid, not less often than annually, to one or more persons (at least one of which is not an organization described in section 170(c) and, in the case of individuals, only to an individual who is living at the time of the creation of the trust) for a term of years (not in excess of 20 years) or for the life or lives of such individual or individuals, Checked 2026-10-11.

  73. The value of the charitable remainder, determined under § 7520, must be at least 10% of the net fair market value of the property placed in the trust (for a CRUT, tested at each contribution).

    • 26 U.S.C. § 664 (LII), § 664(d)(1)(D)the value (determined under section 7520) of such remainder interest is at least 10 percent of the initial net fair market value of all property placed in the trust Checked 2026-10-09.
    • 26 U.S.C. § 664 (LII), § 664(d)(2)(D)with respect to each contribution of property to the trust, the value (determined under section 7520) of such remainder interest in such property is at least 10 percent Checked 2026-10-09.
    • IRS: Charitable remainder trusts, How a charitable remainder trust worksThe remainder donated to charity must be at least 10% of the initial net fair market value of all property placed in the trust Checked 2026-10-09.