Retirement Giving
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How Charitable Giving Coordinates With Retirement Taxes

Josh Rendler, CFP®

Creator of Motion Retirement

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

How does giving to charity affect my taxes in retirement?

It depends on how you give. A QCD (money sent straight from your IRA to a charity at 70½ or older, not taxed as income, up to a yearly limit) is money sent straight from your IRA at 70½ or older, up to a yearly limit. Compared with giving cash from a withdrawal, your AGI (your total income minus a few set subtractions, the number many tax rules start from) ends up lower. Lower AGI can lower the tax on Social Security and protect the senior deduction (an extra deduction for people 65 and older from 2025 through 2028). It can also keep you under a Medicare IRMAA (an extra Medicare charge you pay when your income is above a set line) line two years later. A gift you deduct lowers taxable income (the part of your income that tax rates are actually charged on) but not AGI, and usually means itemizing (costs like charity gifts you list one by one on your return instead of the flat amount). So match the gift to the number you want to lower.

  • A QCD keeps IRA money out of AGI. A gift you deduct lowers taxable income, and generally needs you to itemize. A donor-advised fund gift does not count for the deduction you can take without itemizing. Many retirement costs follow AGI.
  • Lower AGI can lower the taxed share of Social Security and your Medicare IRMAA two years later. It can also shrink the cut to the senior deduction, which is up to $6,000 per person 65 or older (2025 through 2028).
  • QCDs start at 70½ and count toward your RMD (the least you must take out of a regular IRA each year once you reach a set age). The first dollars out of the IRA each year count toward the RMD, so order matters.
  • Giving appreciated stock (stock or fund shares now worth more than you paid for them) held more than a year usually skips the capital gains tax, unless the charity was already bound to sell. A full-value deduction needs you to itemize, and usually a public charity (a charity like a church, school or hospital that gets the best tax treatment for gifts).
  • For most survivors, the year after a spouse dies brings lower income lines. That tends to make a QCD's effect on AGI worth more.
Jump to a question

In retirement, one number does most of the work: AGI. A QCD is money sent straight from your IRA to a charity.

A QCD is left out of your income, so it never reaches your AGI.12 Because of that, you can’t also deduct it as a charitable gift.1 If your IRA holds after-tax money, the QCD comes first from the money that would be taxed.1

A gift you deduct works further down the return: Itemized, so it lowers taxable income but not AGI.3456. Many retirement costs are measured from AGI. That is why how you give can matter as much as how much.

This page covers retirement taxes only where they change a giving choice. The detail lives on four pages:

This site covers federal tax only. State rules vary.

Why does AGI matter more than taxable income?

Many retirement tax rules are measured from AGI, before any deduction. A gift that lowers AGI reaches costs that a deduction can’t. Each row below has its own section, with its source.

Rule Measured from Lowered by a QCD? Lowered by a gift you itemize?
Taxed share of Social Security Half your benefits plus other income, including tax-exempt interest.78 Yes No
Medicare IRMAA (Parts B and D) AGI plus tax-exempt interest, usually from two years earlier.91011 Yes No
Senior deduction cut Modified AGI Yes No
0.5% floor and AGI limits on gifts AGI Yes. A lower AGI lowers the floor, but it also lowers the caps No
Regular income tax Taxable income Yes Yes, if you itemize — or a small cash gift if you don’t. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.12131415

Related video $2M–The Retirement Plan I’d Use to Retire NOW (With Case Study)

Which ways of giving lower AGI?

Only a QCD lowers AGI on its own. Giving stock keeps a gain out of AGI, but only because you never sell. Every other gift is a deduction that comes after AGI.

Way of giving Lowers AGI? Needs you to itemize? Main tax effect
Cash or check No Yes, except a small cash deduction. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.12131415 A deduction
QCD from an IRA Yes. Left out of income before AGI, so it can't also be deducted.12 No IRA money is left out of income, up to the yearly cap
Stock held over a year Keeps the gain out 16 Yes, for the deduction. Its value on the day you give it, if held more than one year.171819202122 No capital gains tax on the gain
Donor-advised fund No. Itemized, so it lowers taxable income but not AGI.3456 Yes A deduction now, grants later
Charity named on your IRA at death Not your AGI No By my reading, the charity owes no income tax on it.2324

A QCD is also capped each year: $111,000 per IRA owner in 2026 ($108,000 in 2025).252627.

Does a donor-advised fund gift lower AGI?

No. A gift to a donor-advised fund is an itemized deduction. So it can lower your income tax, but not AGI. That means it does nothing for IRMAA, the tax on Social Security, or the senior deduction cut.

A QCD has its own list of eligible charities. Two kinds of charity are worth naming here: a supporting organization (a charity set up to help one or more specific public charities) and a private foundation (a charity funded mostly by one person, family or company, not a public charity). A public charity, not a donor-advised fund, supporting organization or most private foundations.2829.

A DAF (a giving account at a charity that holds your gifts until you pick where they go) works differently. Here is what one is:

A donor-advised fund is an account held by a charity, called a sponsor, under your name.30 Once you give, the sponsor controls the money, and you only advise on grants and investments.30 The sponsor can’t be a private foundation.31 So by my reading, a gift to a sponsor that is a public charity counts as one.31 A few kinds of sponsor are ruled out by name, and gifts to those aren’t deductible.32 Those are a veterans’ group, a fraternal society, a cemetery company, or certain supporting organizations.32 Your receipt from the sponsor must also say the sponsor has full legal control of what you gave, or there’s no deduction.32 On a grant to a person, even family, the sponsor would owe a 20% tax.33 So sponsors make grants to charities, not to people.33

See DAF vs. QCD.

How does a QCD affect the tax on Social Security?

A QCD can lower how much of your Social Security is taxed.

To test whether your Social Security is taxed, add half your benefits to your other income, including tax-exempt interest.87 That test starts from AGI, so income left out of AGI, like a QCD, doesn’t count.7 Above a base amount, up to 50% of benefits can be taxed, and up to 85% above a higher one.8

That total is often called provisional income (the number that decides how much of your Social Security is taxed). Picture the range where benefits are being pulled into tax. There, one extra IRA dollar can make that dollar taxable, plus part of a benefit dollar. Some people call this the “tax torpedo.”

A QCD keeps the IRA money out of that test. Once 85% of your benefits is already taxed, the extra effect stops. Then a QCD saves tax only on the IRA dollars themselves.

How does a QCD affect Medicare IRMAA?

A QCD lowers the income Medicare uses to set your Part B and Part D premiums.

IRMAA uses your AGI plus tax-exempt interest.9 It generally uses the return from two years earlier, so 2026 premiums use 2024 returns.109 Each person on Medicare whose income is above the line for their filing status pays it.11

Here is where the first tier starts: Starts above $218,000 joint or $109,000 single in 2026.3435. The charge comes in steps. So a QCD changes your premium only when it brings you below a step. Details are at QCDs and IRMAA.

How does giving affect the senior deduction?

Through AGI.

For 2025 through 2028, each person 65 or older by year end gets an extra $6,00036 deduction.3637 You get it whether or not you itemize.36 Married couples must file jointly, and each person needs a Social Security number on the return.37 It shrinks by $636% of modified AGI above $75,00036, or $150,00036 on a joint return.36 On a joint return, the cut comes off each spouse’s amount, so a couple who both qualify lose $120 per $1,000 over.38

So in that shrinking range, each $1,000 a QCD keeps out of AGI gives back $60 of senior deduction, per person. That comes on top of the $1,000 itself. A gift you itemize does nothing for this cut.

Does the 0.5% floor apply to QCDs?

No.

From 2026, if you itemize, your gifts count only above 0.5% of your AGI.39 By my reading, the floor comes off after the yearly AGI caps.40 It comes off in a set order, starting with gifts under the 20% cap and ending with cash to public charities.41

A QCD isn’t a deduction: Left out of income before AGI, so it can't also be deducted.12. It is income that is left out, so the 0.5% floor (a 2026 rule: the first sliver of your charity gifts, half a percent of income, is not deductible) has nothing to cut. That is my reading of how the law is built. No IRS source says it directly.

A QCD also lowers AGI. That lowers the floor on any other gifts you itemize.

Can giving lower the 3.8% tax on investment income?

It can, in some cases.

The 3.8% net investment income tax applies to the smaller of your investment income or your income above a threshold.42 By my reading, gain on stock you give away and never sell isn’t counted.42

A QCD lowers modified AGI. By my reading, that helps only when the income-over-the-line number is the smaller of the two.

How do RMDs and giving fit together?

A QCD counts toward your required minimum distribution (RMD) for the year.43 Taking out more than your RMD doesn’t earn credit toward a later year’s RMD.44

So the part of the RMD you would give anyway can go out as a QCD instead of as income. The age they begin is 73 or 75, depending on birth year.4546. A QCD needs you to be 70½ or older on the day the money leaves the IRA.47.

Order matters within the year.

A QCD counts in the year the IRA firm pays it.48 The first dollars out of your IRA each year count toward your RMD.48 By my reading, a taxable withdrawal taken earlier in the year can’t be turned into a QCD later.48

Your IRA custodian (the bank or brokerage that holds your IRA) sets its own QCD steps and year-end cutoffs. It is worth confirming the timeline with yours. See QCDs and RMDs.

Once RMDs start, is it too late to lower the tax on them?

No. QCDs often do the most once RMDs start, because they count toward the RMD. Here is where the money can come from. One kind worth naming is an inherited IRA (an IRA you get from someone who died). A traditional or inherited IRA, or a SEP or SIMPLE IRA with no employer contribution that year.4950.

Roth conversions are still possible after RMDs begin.

A conversion from a traditional IRA to a Roth IRA is taxed as income.51 There is no 10% early-withdrawal penalty on the conversion itself.51 Taking the converted money out of the Roth within five years can bring that penalty back.52 An exception may still apply.52 An RMD can’t be converted.53 So in a year you owe an RMD, it has to come out before you convert.53

Whether a conversion still makes sense depends on your tax rate now versus later. It also depends on how close you are to an IRMAA line.

How do capital gains fit in?

Giving stock you’ve held more than a year can skip the capital gains tax. Gain is measured by what a sale brings in, above what you paid. A gift to charity brings in nothing, so there is no gain to report. 16 By my reading, not selling keeps the gain out of AGI.

One case has its own test. In a buyback, the gain is yours only if the charity was bound to give up the shares.54.

The deduction only helps if you itemize. Here is the amount: Its value on the day you give it, if held more than one year.171819202122. A yearly cap also applies, set as a share of your AGI. For every cap, see the yearly caps on charitable deductions.

Gifts of stock to a private foundation work differently: Generally what you paid; publicly traded stock gets full value.5556.

Choosing between stock and a QCD depends on three things. How big is the gain? Would you ever sell? Do you itemize? See appreciated stock vs. QCD.

Which money is better to leave to family, and which to charity?

It depends on the kind of money. Stock and IRA money land very differently on your heirs.

When you die, your heirs’ cost for stock generally resets to its value on the day you die.57 If they sell within a year of your death, it still counts as held more than a year.57

Pre-tax IRA money gets no step-up when you die.58 Whoever inherits it pays income tax when they take it out.58 It’s taxed as ordinary income, no matter what the investments gained.59

A charity is treated differently again: By my reading, the charity owes no income tax on it.2324.

Two kinds of charitable trust come up in the estate rule below: 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).

Gifts to charity at death are deducted from the estate for federal estate tax, with no dollar limit.60 A gift of only what’s left after others are paid qualifies only through a CRAT, CRUT or pooled income fund.60

So for people leaving money to both family and charity, which money goes where is often worth weighing. You may also be able to name a donor-advised fund on an IRA. Whether that works is up to your IRA firm and the fund’s sponsor. See charities as beneficiaries.

What changes when a spouse dies?

The survivor’s tax lines usually shrink more than income does. That tends to make gifts that lower AGI worth more.

A surviving spouse who hasn’t remarried by year end can file jointly for the year of death.61 That’s the last year they can file jointly with that spouse.61 Joint rates for the next two years need a child or stepchild you can claim as a dependent.61

So most widowed retirees file single from the next year on. The lines they face are lower, starting with the standard deduction (the flat amount most people can subtract from income without listing costs).

In 2026, the standard deduction is $32,20062 for a married couple filing jointly and $16,10062 for a single filer. Each married spouse 65 or older adds $1,65062. A single person 65 or older adds $2,05062, unless they are a surviving spouse.

2026 item Married filing jointly Single
Standard deduction $32,20062 $16,10062
Extra amount, age 65+ $1,65062 each $2,05062
Senior deduction cut begins $150,00036 $75,00036
IRMAA first tier starts above $218,00034 $109,00034

A death may also lower income enough to reduce or remove IRMAA.

After certain life events, such as a spouse’s death, you can ask Social Security to use a more recent year’s income.63 The event must lower your income enough to lower or end your IRMAA.63 One-time income, such as a Roth conversion or a capital gain, doesn’t count as such an event.64

The optional form is SSA-44. 63

A QCD’s effect on AGI-linked costs tends to be bigger for a single filer. Its income tax edge over a cash gift is not always bigger. A single filer’s smaller standard deduction can let an itemized cash gift do more of its work. The example below shows both. More at giving after a spouse dies.

Worked example · tax year 2026A surviving spouse: QCD vs. cash gift
Assumptions
  • Single filer, age 75, widowed in 2024, no dependents. Takes the standard deduction.
  • Gives $10,000 a year to charity. Her RMD is larger than $10,000.
  • If the RMD is taken in cash, AGI is $10,000 above the single senior-deduction phaseout threshold.
  • The taxable share of her Social Security is already at the 85% maximum, so extra income does not change it.
  • The tax value uses the 2026 federal bracket for her taxable income (shown below). IRMAA is left out here; see the IRMAA page.
  • She is 65 or older, so she gets the senior deduction. Its 6% cut above $75,000 is shown in the table.
Step Take RMD, give $10,000 cash Give $10,000 as a QCD
AGI $75,00036 + $10,000 = $85,000 $85,000 − $10,000 = $75,000
Standard deduction (single, 65+) $16,10062 + $2,05062 = $18,150 $18,150
Non-itemizer cash gift deduction $1,000 $0 (a QCD is not a deduction)
Senior deduction cut 6% × $10,000 = $600 6% × $0 = $0
Senior deduction $6,00036 − $600 = $5,400 $6,000
Taxable income $85,000 − $18,150 − $1,000 − $5,400 = $60,450 $75,000 − $18,150 − $6,000 = $50,850
Difference $60,450 − $50,850 = $9,600 lower
Federal tax saved $9,600 × 22%65 = $2,112 (both $50,850 and $60,450 sit in the same bracket)

The QCD keeps $10,000 out of AGI. It gives back $600 of senior deduction. It gives up the $1,000 cash deduction for non-itemizers. Net: $10,000 + $600 − $1,000 = $9,600 less taxable income.

What can you check before year end?

A short list helps. These steps name what to look at, not what to do.

  1. Estimate this year’s income. Include RMDs, conversions, interest and fund payouts.
  2. Find the nearest line. Look at the IRMAA tiers and the senior deduction cut for your filing status.
  3. Line up QCDs before other IRA withdrawals. The first dollars out count toward the RMD, as above.
  4. Ask your custodian for its QCD cutoff. Custodians set their own year-end deadlines.
  5. Check whether you’ll itemize. If not, a cash gift may only reach the small 2026 cash deduction.
  6. Get a charity receipt (the written receipt a charity gives you for a large gift, needed before you file) for any gift of $25066 or more. Keeping one for every gift is still a good habit. Here is what the receipt has to say:

A gift of $25066 or more needs a written receipt from the charity.67 It must give the cash amount, or describe any property, and say whether you got anything back.6768 If you did, it must describe it and estimate its value.67 You must have it by the day you file, or your return’s due date plus any extension you got, whichever comes first.6968

Questions people also ask

Is a gift from my IRA tax deductible? No. Left out of income before AGI, so it can't also be deducted.12. That is usually worth more than a deduction, because it lowers AGI.

Can I deduct gifts if I don’t itemize? Starting in 2026, yes, for a small amount of cash. Two things are worth naming first: a gift of property (anything you own other than cash, such as stock or a fund, not just a house), and a carryover (the part of a gift too big to deduct this year, saved for up to five later years) from an earlier year.

From 2026, if you don’t itemize, you can deduct up to $1,00012 of cash gifts, or $2,00012 on a joint return.12 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.1314 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.13 It lowers your taxable income, but not your AGI.15

Can I name a donor-advised fund on my IRA? It may be possible. Whether it works is up to your IRA firm and the fund’s sponsor. By my reading, the list of charities a QCD can go to covers gifts you make while you’re alive. A public charity, not a donor-advised fund, supporting organization or most private foundations.2829.

Common mistakes

  • Comparing gifts by deduction size alone. A $10,000 QCD and a $10,000 itemized gift can end very differently. Only one lowers AGI.
  • Expecting a donor-advised fund gift to lower IRMAA. It lowers taxable income, not the income Medicare uses.
  • Taking the RMD early, then planning QCDs. The first dollars out count toward the RMD.
  • Forgetting the two-year IRMAA lag. This year’s gifts usually affect premiums two years from now.
  • Keeping the couple’s giving plan after a death. Single-filer lines are lower, so the cash, stock and QCD comparison is worth running again.

Sources (69)

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  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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).

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. Gain is measured by the amount realized on a sale or other disposition of property over adjusted basis, so a donor who gives appreciated shares to charity instead of selling them realizes nothing and reports no capital gain.

    • 26 U.S.C. § 1001 (Cornell LII), § 1001(a)The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized. Checked 2026-10-11.

  17. Capital gain property is a capital asset that would have produced long-term capital gain if sold at fair market value on the date of the gift; for stock this generally means held more than 1 year.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(iv)the term “ capital gain property ” means, with respect to any contribution, any capital asset the sale of which at its fair market value at the time of the contribution would have resulted in gain which would have been long-term capital gain. Checked 2026-10-09.
    • IRS Publication 526 (2025), Capital Gain PropertyCapital gain property includes capital assets held more than 1 year. Checked 2026-10-09.

  18. For property held 1 year or less, the deduction is reduced by the gain that would not have been long-term, so the deduction is generally the lower of basis or fair market value.

    • 26 U.S.C. § 170 (LII), § 170(e)(1)(A)the amount of gain which would not have been long-term capital gain (determined without regard to section 1221(b)(3) ) if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution) 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.

  19. If donated property is worth less than its basis, the deduction is limited to fair market value and the loss is not deductible.

    • IRS Publication 526 (2025), Giving Property That Has Decreased in ValueIf you contribute property with an FMV that is less than your basis in it, your deduction is limited to its FMV. You can’t claim a deduction for the difference between the property’s basis and its FMV. Checked 2026-10-09.

  20. Publicly traded stock is valued at the average (mean) of the highest and lowest quoted selling prices on the valuation date (date of the gift).

    • IRS Publication 561 (Rev. 12/2025), Stocks and Bonds, Selling prices on valuation datethe FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. Checked 2026-10-09.
    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)the mean between the highest and lowest quoted selling prices on the valuation date is the fair market value per share or bond. Checked 2026-10-09.

  21. If there were no sales of the security on the valuation date but there were sales within a reasonable period both before and after it, fair market value is a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the valuation date.

    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)If there were no sales on the valuation date but there were sales on dates within a reasonable period both before and after the valuation date, the fair market value is determined by taking a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the valuation date. Checked 2026-10-12.

  22. When there were no sales on the valuation date, the average of the means on the nearest trading date before and the nearest trading date after is weighted inversely by the number of trading days between each selling date and the valuation date, so the nearer trading date carries more weight.

    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)The average is to be weighted inversely by the respective numbers of trading days between the selling dates and the valuation date. Checked 2026-10-12.

  23. A § 501(c)(3) charity is exempt from federal income tax, so a charity that receives an IRA as beneficiary owes no income tax on the distribution (inference: IRA proceeds are not unrelated business income).

    • 26 U.S.C. § 501 (LII), § 501(a)An organization described in subsection (c) or (d) or section 401(a) shall be exempt from taxation under this subtitle unless such exemption is denied under section 502 or 503. Checked 2026-10-09.

  24. An organization described in § 501(c) (including a § 501(c)(3) charity) is exempt from federal income tax, so a charity that receives pre-tax IRA dollars generally pays no income tax on them.

    • 26 U.S.C. § 501 (LII), § 501(a)An organization described in subsection (c) or (d) or section 401(a) shall be exempt from taxation under this subtitle unless such exemption is denied under section 502 or 503. Checked 2026-10-09.

  25. 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.

  26. 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.

  27. 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.

  28. 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.

  29. 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.

  30. 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.

  31. 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.

  32. 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.

  33. 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.

  34. 2026 IRMAA (based generally on 2024 MAGI): the first tier begins above $218,000 MAGI for married filing jointly and above $109,000 for single, head of household, or qualifying surviving spouse. Joint tiers: >$218,000–$274,000; >$274,000–$342,000; >$342,000–$410,000; >$410,000–<$750,000; ≥$750,000. Single tiers: >$109,000–$137,000; >$137,000–$171,000; >$171,000–$205,000; >$205,000–<$500,000; ≥$500,000. Total 2026 Part B premium by tier: $284.10, $405.80, $527.50, $649.20, $689.90 per month; Part D IRMAA $14.50, $37.50, $60.40, $83.30, $91.00 plus plan premium. Tiers are step functions: one dollar over a boundary applies the full tier.

    • SSA POMS HI 01101.010 (12/02/2025), B. MAGI thresholdsMarried, filing jointly $194,000 $206,000 $212,000 $218,000 All other filing statuses $97,000 $103,000 $106,000 $109,000 Checked 2026-10-09.
    • SSA POMS HI 01101.020 (12/02/2025), B.2 (2026, married filing jointly)More than $218,000 but less than or equal to $274,000 $284.10 $14.50 + Plan premium More than $274,000 but less than or equal to $342,000 $405.80 $37.50 + Plan premium More than $342,000 but less than or equal to $410,000 $527.50 $60.40 + Plan premium More than $410,000 but less than $750,000 $649.20 $83.30 + Plan premium Greater than or equal to $750,000 $689.90 $91.00 + Plan Premium Checked 2026-10-09.
    • SSA POMS HI 01101.020 (12/02/2025), B.1 (2026, single/HOH/QSS)More than $109,000 but less than or equal to $137,000 $284.10 $14.50 + Plan premium More than $137,000 but less than or equal to $171,000 $405.80 $37.50 + Plan premium More than $171,000 but less than or equal to $205,000 $527.50 $60.40 + Plan premium More than $205,000 but less than $500,000 $649.20 $83.30 + Plan Premium Greater than or equal to $500,000 $689.90 $91.00 + Plan Premium Checked 2026-10-09.

  35. SSA's table of IRMAA base MAGI thresholds shows the first joint threshold rising each year from 2023 to 2026: $194,000 (2023), $206,000 (2024), $212,000 (2025), $218,000 (2026); single/other $97,000, $103,000, $106,000, $109,000. Whether later years keep rising is not stated (inference only).

    • SSA POMS HI 01101.010, B, table column headingsIRS Filing Status 2023 2024 2025 2026 Checked 2026-10-10.
    • SSA POMS HI 01101.010, B, table rowsMarried, filing jointly $194,000 $206,000 $212,000 $218,000 Checked 2026-10-10.

  36. 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.

  37. 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.

  38. 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.

  39. 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.

  40. 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.

  41. 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.

  42. The 3.8% net investment income tax applies to the lesser of net investment income (which includes net gain from disposing of property) or modified AGI above a threshold. Gain that is never realized is not net gain — the avoidance is an inference.

    • 26 U.S.C. § 1411 (LII), § 1411(a)(1)a tax equal to 3.8 percent of the lesser of— (A) net investment income for such taxable year, or (B) the excess (if any) of— (i) the modified adjusted gross income for such taxable year, over (ii) the threshold amount . Checked 2026-10-09.
    • 26 U.S.C. § 1411 (LII), § 1411(c)(1)(A)(iii)net gain (to the extent taken into account in computing taxable income) attributable to the disposition of property Checked 2026-10-09.

  43. 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.

  44. 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.

  45. 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.

  46. 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.

  47. 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.

  48. 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.

  49. 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.

  50. 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.

  51. A conversion (rollover) from a traditional IRA to a Roth IRA is included in gross income to the extent it would have been includible had it not been rolled over; the 10% early-distribution tax of § 72(t) does not apply.

    • 26 U.S.C. § 408A (LII), § 408A(d)(3)(A)(i)-(ii)there shall be included in gross income any amount which would be includible were it not part of a qualified rollover contribution , (ii) section 72(t) shall not apply, Checked 2026-10-09.

  52. If a Roth IRA distribution within the 5-taxable-year period beginning with the year of a conversion is allocable to the converted amount, § 72(t) (the 10% additional tax, with its exceptions) is applied as if that portion were includible in income, limited to the taxable amount converted.

    • 26 U.S.C. § 408A (LII), § 408A(d)(3)(F)(i)such distribution is made within the 5-taxable year period beginning with the taxable year Checked 2026-10-10.
    • 26 U.S.C. § 408A (LII), § 408A(d)(3)(F)(i)then section 72(t) shall be applied as if such portion were includible in gross income. Checked 2026-10-10.

  53. Amounts that must be distributed from a traditional IRA for a year under the RMD rules cannot be converted to a Roth IRA (and are not eligible for rollover), so in an RMD year the RMD has to come out before any of the IRA can be converted.

    • IRS Publication 590-A (2025), Converting From Any Traditional IRA Into a Roth IRA, Required distributionsYou can’t convert amounts that must be distributed from your traditional IRA for a particular year (including the calendar year in which you reach age 73) under the required distribution rules (discussed in Pub. 590-B). Checked 2026-10-10.
    • IRS Publication 590-A (2025), Rollover From One IRA Into Another, Required distributionsAmounts that must be distributed during a particular year under the required distribution rules (discussed in Pub. 590-B) aren’t eligible for rollover treatment. Checked 2026-10-10.

  54. 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).

  55. Capital gain property given to most private (nonoperating) foundations is deductible only at basis, except 'qualified appreciated stock' (publicly traded stock that is capital gain property, subject to a 10% ownership limit), which keeps a fair-market-value deduction. Capital gain property gifts to these organizations are limited to 20% of AGI (or, if less, 30% of AGI minus 30%-category capital gain gifts).

    • 26 U.S.C. § 170 (LII), § 170(e)(1)(B)(ii)(ii) to or for the use of a private foundation (as defined in section 509(a) ), other than a private foundation described in subsection (b)(1)(F), Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(A)Subparagraph (B)(ii) of paragraph (1) shall not apply to any contribution of qualified appreciated stock . Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(B)for which (as of the date of the contribution) market quotations are readily available on an established securities market, and (ii) which is capital gain property Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)Donor may not contribute more than 10 percent of stock of corporation Checked 2026-10-09.
    • 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 (II) the excess of 30 percent of the taxpayer’s contribution base for the taxable year over the amount of the contributions of capital gain property to which subparagraph (C) applies. Checked 2026-10-09.
    • IRS Publication 526 (2025), Capital Gain Property, ExceptionsThe property (other than qualified appreciated stock) is contributed to certain private nonoperating foundations; Checked 2026-10-09.

  56. The 10 percent limit on qualified appreciated stock is cumulative and aggregated: stock is not qualified appreciated stock to the extent the amount contributed, increased by the aggregate amount of all prior such contributions by the donor of stock in that corporation, exceeds 10 percent in value of all of the corporation's outstanding stock; and the donor is treated as making all contributions made by any member of the donor's family.

    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(i)In the case of any donor, the term “qualified appreciated stock” shall not include any stock of a corporation contributed by the donor in a contribution to which paragraph (1)(B)(ii) applies (determined without regard to this paragraph) to the extent that the amount of the stock so contributed (when increased by the aggregate amount of all prior such contributions by the donor of stock in such corporation) exceeds 10 percent (in value) of all of the outstanding stock of such corporation. Checked 2026-10-11.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(ii)For purposes of clause (i), an individual shall be treated as making all contributions made by any member of his family (as defined in section 267(c)(4)). Checked 2026-10-11.

  57. Heirs generally take a basis equal to fair market value at the date of death, and inherited property sold within a year is treated as held more than 1 year.

    • 26 U.S.C. § 1014 (LII), § 1014(a)(1)(1) the fair market value of the property at the date of the decedent’s death, Checked 2026-10-09.
    • 26 U.S.C. § 1223 (LII), § 1223(9)such property is sold or otherwise disposed of by such person within 1 year after the decedent’s death, then such person shall be considered to have held such property for more than 1 year. Checked 2026-10-09.

  58. Pre-tax retirement accounts are income in respect of a decedent: the beneficiary who receives the right to the money includes it in gross income when received, and IRD gets no basis step-up at death.

    • 26 U.S.C. § 691 (LII), § 691(a)(1)shall be included in the gross income, for the taxable year when received, of: Checked 2026-10-09.
    • 26 U.S.C. § 691 (LII), § 691(a)(1)(B)the person who, by reason of the death of the decedent, acquires the right to receive the amount Checked 2026-10-09.
    • 26 U.S.C. § 1014 (LII), § 1014(c)This section shall not apply to property which constitutes a right to receive an item of income in respect of a decedent under section 691. Checked 2026-10-09.

  59. Taxable distributions from a traditional IRA are taxed as ordinary income; capital gain treatment does not apply, regardless of what the investments inside the IRA gained.

    • IRS Publication 590-B (2025), Ch. 1, Are Distributions Taxable? — Ordinary incomeDistributions from traditional IRAs that you include in income are taxed as ordinary income. No special treatment. In figuring your tax, you can't use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. Checked 2026-10-10.

  60. The federal estate tax allows an unlimited deduction for bequests to qualifying charities; a split gift (charity gets a remainder) is deductible only through a CRAT, CRUT or pooled income fund.

    • 26 U.S.C. § 2055 (LII), § 2055(a)the value of the taxable estate shall be determined by deducting from the value of the gross estate the amount of all bequests, legacies, devises, or transfers— Checked 2026-10-09.
    • 26 U.S.C. § 2055 (LII), § 2055(e)(2)(A)in the case of a remainder interest, such interest is in a trust which is a charitable remainder annuity trust or a charitable remainder unitrust Checked 2026-10-09.

  61. A surviving spouse may file jointly for the year of death (if not remarried by year end); that is the last joint year. Qualifying surviving spouse status (joint rates and the joint standard deduction) is available for the next 2 years only to a surviving spouse with a dependent child or stepchild; otherwise the survivor generally files as single afterward.

    • IRS Publication 501 (2025), Qualifying Surviving SpouseThe year of death is the last year for which you can file jointly with your deceased spouse. Checked 2026-10-09.
    • IRS Publication 501 (2025), Qualifying Surviving Spouse, Eligibility rulesYou have a child or stepchild (not a foster child) whom you can claim as a dependent or could claim as a dependent Checked 2026-10-09.
    • IRS Publication 501 (2025), Filing Status, Married personsIf you didn’t remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Checked 2026-10-09.

  62. 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.)

  63. Death of a spouse is one of eight life-changing events (LCEs) for IRMAA. A beneficiary who has had an LCE that significantly reduces MAGI (a reduction that lowers or eliminates IRMAA) may ask SSA for a new initial determination using a more recent tax year; the request can be made any time after the event. Form SSA-44 is the optional form for reporting it. The determination applies only to the beneficiary who reports it. Ordinarily the new determination is not retroactive to a prior premium year, unless the event occurred in October-December of that prior year and the request is received by March 31 of the current premium year. SSA needs proof of death and tax information or an estimate of MAGI and filing status for the year to be used.

    • SSA POMS HI 01120.005 Life Changing Events, C. List of life changing eventsA Life-Changing Event (LCE) can be one or more of the following eight events: 1. Death of spouse ( HI 01120.010 ); 2. Marriage ( HI 01120.015 ); 3. Divorce or annulment ( HI 01120.020 ); 4. Work reduction ( HI 01120.025 ;) 5. Work stoppage ( HI 01120.030 ); 6. Loss of income-producing property ( HI 01120.035 ); 7. Loss of employer pension ( HI 01120.040 ); or 8. Receipt of settlement payment from a current or former employer ( HI 01120.043 ). Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, A. Description of life changing eventsA “significant” reduction in MAGI is a reduction that decreases or eliminates the income-related monthly adjustment amount (IRMAA) for a specific tax year. A beneficiary who has experienced an LCE causing a significant reduction in MAGI may request us to make a new initial determination using a more recent tax year, than the tax year used previously to impose IRMAA. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, A, NOTEBeneficiaries may use the optional Form SSA-44 (Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event) to report a life-changing event with a significant reduction in income. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, B.1A beneficiary may request a new initial determination any time after an LCE and a significant reduction in MAGI has occurred. The LCE may have occurred at any time in the past. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, A, NOTEA report of an LCE with a significant reduction in MAGI applies only to the beneficiary reporting. Checked 2026-10-10.
    • SSA POMS HI 01120.010 Life Changing Event (LCE) – Death of Spouse, A. PolicyThe death of a spouse is an LCE that could result in a “significant” reduction in MAGI and a change in a tax filing status for a beneficiary. Checked 2026-10-10.
    • SSA POMS HI 01120.010 Life Changing Event (LCE) – Death of Spouse, B. What Evidence is Needed to Support the ChangeIf the spouse of a beneficiary has died, SSA will need proof of the death and tax information for the tax year to be used. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, B.2Ordinarily, we do not make a determination retroactive to a prior premium year on a new initial determination, unless the LCE causing the reduction occurs in the last three calendar months of the immediately prior premium year and we receive the request for a new initial determination for the preceding premium year by March 31, of the current premium year. Checked 2026-10-10.
    • SSA POMS HI 01120.010 Life Changing Event (LCE) – Death of Spouse, BAn estimate of MAGI and tax filing status for the tax year they are requesting SSA to use (current premium year or PY-1), or Checked 2026-10-10.

  64. SSA's list of IRMAA life-changing events is exclusive. One-time income that raises MAGI, including capital gains from the sale of property and the conversion of an IRA, is a non-qualifying event, so a Roth conversion or a large capital gain does not by itself support a new initial determination.

    • SSA POMS HI 01120.005 Life Changing Events, D. Examples of non-qualifying life-changing eventsOur list of LCEs for IRMAA purposes is exclusive. Checked 2026-10-10.
    • SSA POMS HI 01120.005 Life Changing Events, D. Examples of non-qualifying life-changing eventsSome examples of one-time income that cause an increase and are non-qualifying events (NQEs) include: • Capital gains from the sale of property; • Lottery winnings; • Casino winnings; • Conversion of an IRA; or • Cashing bonds. Checked 2026-10-10.

  65. 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.

  66. The QCD must satisfy § 170 deductibility rules (other than percentage limits), including the contemporaneous written acknowledgment requirement for gifts of $250 or more. Any benefit received (e.g., a gala dinner) can disqualify the QCD because the entire distribution must be deductible.

    • 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 2026-10-09.
    • IRS Notice 2007-7, A-39including the substantiation requirements under § 170(f)(8). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(A)No deduction shall be allowed under subsection (a) for any contribution of $250 or more unless the taxpayer substantiates the contribution by a contemporaneous written acknowledgment Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsyou must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution. Checked 2026-10-09.

  67. The contemporaneous written acknowledgment for a gift of $250 or more must state the cash amount or describe (not value) property, say whether the charity provided goods or services in return, and estimate their value. It is contemporaneous if obtained by the earlier of the filing date or the extended due date.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(i)The amount of cash and a description (but not value) of any property other than cash contributed. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(ii)Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(iii)A description and good faith estimate of the value of any goods or services referred to in clause (ii) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-09.

  68. A contemporaneous written acknowledgment must state the amount of cash contributed, whether the charity provided any goods or services in return, and a description and good-faith estimate of the value of any such goods or services (or a statement that they consisted solely of intangible religious benefits). It is contemporaneous if obtained by the earlier of the date the return is filed or the return's due date including extensions.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(i) The amount of cash and a description (but not value) of any property other than cash contributed. (ii) Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i). (iii) A description and good faith estimate of the value of any goods or services referred to in clause (ii) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-09.

  69. A charity receipt (contemporaneous written acknowledgment) counts only if obtained by the earlier of the date the return is filed or the return's due date, including extensions.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-10.