Retirement Giving
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Case study: a married couple giving $100,000 a year in retirement

Josh Rendler, CFP®

Creator of Motion Retirement

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

What is the most tax-efficient way for a retired couple to give $100,000 a year?

It depends on where the money sits. For this made-up couple, both 74, giving by QCD (money sent straight from your IRA to a charity at 70½ or older, not taxed as income, up to a yearly limit) instead of by check cut their 2026 federal income tax by about 35%. The QCD kept the gifts out of AGI (your total income minus a few set subtractions, the number many tax rules start from), so both senior deductions (an extra deduction for people 65 and older from 2025 through 2028) ($6,000 each) survived. Giving stock to a donor-advised fund (a giving account at a charity that holds your gifts until you pick where they go) won the first year but cost more over two years.

  • For this made-up couple, both 74, giving by QCD instead of by check cut 2026 federal income tax by about 35%. That held even though the cash gift was itemized.
  • Much of the gap came from the senior deduction ($6,000 per person 65+). It shrinks once modified AGI passes $150,000 on a joint return. A QCD lowers AGI. An itemized gift doesn't.
  • The per-person QCD limit ($111,000 in 2026, $108,000 in 2025) didn't matter here. Each spouse gave from their own IRA.
  • Putting stock into a donor-advised fund all at once won the first year but lost on two-year income tax. It came out ahead if the couple would have sold the shares anyway.
  • Using 2026 Medicare lines as a stand-in, the all-cash plan would bring an IRMAA (an extra Medicare charge you pay when your income is above a set line) surcharge. Both QCD plans stayed under the line. That cost isn't in the tax totals.
Jump to a question

For this made-up couple, giving $100,000 a year by QCD instead of by check cut their 2026 federal income tax by $6,240. That is about 35%. The QCD kept the gifts out of AGI.

Five words show up below: taxable income (the part of your income that tax rates are actually charged on), the standard deduction (the flat amount most people can subtract from income without listing costs), itemized deductions (costs like charity gifts you list one by one on your return instead of the flat amount), a public charity (a charity like a church, school or hospital that gets the best tax treatment for gifts), and RMDs (the least you must take out of a regular IRA each year once you reach a set age).

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

Everything here is federal income tax only, under 2026 law. The 2027 column reuses 2026 figures, because 2027’s aren’t set yet. State tax is left out, and state rules vary. The couple is invented. The rules and figures are real and cited. Nothing here is a recommendation for any household.

What were the results?

Plan How they give $100,000 2026 AGI 2026 federal tax Two-year federal tax
A Cash from savings $248,000 $17,804 $35,608
B QCDs from both IRAs $148,000 $11,564 $23,128
C Smaller QCDs, plus stock to a donor-advised fund in 2026 $173,000 $10,859 $28,500

Where does your $100,000 sit?

The best place to start often depends on where the money is. Whether a spot fits you depends on your age, whether you itemize, and your plans for the shares.

If the money sits in… Often looked at first Why
A regular IRA, and you’re 70½ or older A QCD Left out of income before AGI, so it can't also be deducted.12. The cap: $111,000 per IRA owner in 2026 ($108,000 in 2025).345
Stock held over a year that has gone up a great deal A gift of the shares to a public charity, if you itemize No capital gains tax 6. The deduction: Its value on the day you give it, if held more than one year.789101112
Cash in the bank A cash gift, or several years at once to clear the standard deduction Cash helps mainly if you itemize. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.13141516
Money you plan to leave at death Naming a charity on your IRA By my reading, the charity owes no income tax on it.1718

For giving at death, see charities as beneficiaries.

Who is the couple?

They are married, both 74, and file jointly. They have large IRAs and a taxable account with stock that has gone up a great deal. They give about $100,000 a year.

Item Assumption
Ages and filing status Both 74 all year, married filing jointly
Regular IRAs $1.5 million each ($3 million total)
2026 RMDs Assumed $60,000 each ($120,000 total). A round number for easier math, not the exact RMD on $1.5 million
Social Security $80,000 combined. Assumed 85% taxable ($68,000) in every plan. The test: Half your benefits plus other income, including tax-exempt interest.1920. Their other income is past the point where the 85% maximum applies, even in Plan B
Taxable brokerage account $2 million. The bond and cash part pays $60,000 of interest (ordinary income). The shares have been held more than a year and are worth five times what was paid. To keep the math on one rate table, assume the stock pays no dividends
Other itemized deductions $20,000 (state and local taxes and the like)
Giving goal $100,000 a year to public charities
AGI before any gift $120,000 + $68,000 + $60,000 = $248,000

RMDs begin at 73 or 75, depending on birth year.2122. A QCD needs you to be 70½ or older on the day the money leaves the IRA.23. At 74, both tools are open to them.

What are the three plans?

In all three, the charities get the same $100,000 a year. The plans differ in where the money comes from.

  • Plan A, all cash. They take both RMDs in full and write $100,000 of checks from savings. No shares are sold.
  • Plan B, QCDs. Each spouse sends $50,000 straight from their own IRA to the charities as a QCD. The yearly cap: $111,000 per IRA owner in 2026 ($108,000 in 2025).345. At $100,000 total, neither comes close to the limit.
  • Plan C, QCDs plus stock all at once. Every year each spouse sends a $37,500 QCD, so $75,000 total. In 2026 only, they also give $50,000 of stock to a donor-advised fund. They paid $10,000 for those shares. They suggest grants of $25,000 in 2026 and $25,000 in 2027. In 2027 they make the QCDs and nothing else.

In Plan C, more money leaves their hands in 2026, because the fund holds the 2027 grant. Stock is used here for two reasons. One is the rule below on who can receive a QCD. The other is that the whole deduction lands in 2026. Needing to give more than both QCD limits allow is not a reason. At $75,000 of QCDs, they are far under the limits.

Two more words come up next: a private foundation (a charity funded mostly by one person, family or company, not a public charity) and a supporting organization (a charity set up to help one or more specific public charities).

Here is who can receive a QCD: A public charity, not a donor-advised fund, supporting organization or most private foundations.2425. That is why the stock goes to the fund instead.

A donor-advised fund is an account held by a charity, called a sponsor, under your name.26 Once you give, the sponsor controls the money, and you only advise on grants and investments.26 The sponsor can’t be a private foundation.27 So by my reading, a gift to a sponsor that is a public charity counts as one.27 A few kinds of sponsor are ruled out by name, and gifts to those aren’t deductible.28 Those are a veterans’ group, a fraternal society, a cemetery company, or certain supporting organizations.28 Your receipt from the sponsor must also say the sponsor has full legal control of what you gave, or there’s no deduction.28 On a grant to a person, even family, the sponsor would owe a 20% tax.29 So sponsors make grants to charities, not to people.29

How does each plan change AGI?

QCDs lower AGI. Cash and stock gifts don’t. A gift you itemize works further down the return: Itemized, so it lowers taxable income but not AGI.30313233. A QCD also counts toward each spouse’s RMD, so that part never becomes income: Counts toward your RMD for the year.3435.

Step Plan A: cash Plan B: QCDs Plan C (2026): QCDs + stock to DAF
RMDs taken $120,000 $120,000 $120,000
Less QCDs $0 $50,000 + $50,000 = $100,000 $37,500 + $37,500 = $75,000
Taxable IRA income $120,000 $20,000 $45,000
Plus taxable Social Security $68,000 $68,000 $68,000
Plus interest $60,000 $60,000 $60,000
AGI $248,000 $148,000 $173,000

In Plan B, each spouse’s $50,000 QCD is less than their $60,000 RMD. So $10,000 of each RMD is still taxed.

Timing matters here.

A QCD counts in the year the IRA firm pays it.36 The first dollars out of your IRA each year count toward your RMD.36 By my reading, a taxable withdrawal taken earlier in the year can’t be turned into a QCD later.36

So for the QCDs to cover $50,000 of each RMD, no more than $10,000 can come out first. Custodians set their own QCD steps and year-end cutoffs. The timing is worth confirming with yours.

Do they itemize or take the standard deduction?

Plans A and C itemize. Plan B takes the standard deduction. In each plan, they use whichever total is bigger.

In 2026, the standard deduction is $32,20037 for a married couple filing jointly and $16,10037 for a single filer. Each married spouse 65 or older adds $1,65037. A single person 65 or older adds $2,05037, unless they are a surviving spouse.

For this couple that is $35,500.

Two limits can cut a gift you itemize. The first is the 0.5% floor (a 2026 rule: the first sliver of your charity gifts, half a percent of income, is not deductible): From 2026, itemized gifts count only above 0.5% of AGI.383940. The second is a yearly cap, set as a share of AGI. The table below shows the cap for each plan. For every cap, see the yearly caps on charitable deductions.

The yearly caps and the 0.5% floor are shares of your AGI, figured without any net operating loss carryback.41 So a lower AGI also lowers the caps.41

Step Plan A Plan B Plan C (2026)
Gift that could be deducted $100,000 cash None (QCDs are excluded, not deducted) $50,000 of stock. The deduction: Its value on the day you give it, if held more than one year.789101112
AGI percentage limit 60% × $248,000 = $148,800, not reached n/a 30% × $173,000 = $51,900, not reached
0.5% floor 0.5% × $248,000 = $1,240 n/a 0.5% × $173,000 = $865
Charitable deduction after floor $100,000 − $1,240 = $98,760 $0 $50,000 − $865 = $49,135
Plus other itemized deductions $20,000 $20,000 $20,000
Total itemized $118,760 $20,000 $69,135
Standard deduction $35,500 $35,500 $35,500
They use Itemized, $118,760 Standard, $35,500 Itemized, $69,135

In Plan C, the $25,000 grant the fund makes in 2026 is not a second deduction. The deduction was the $50,000 gift to the fund.

A gift is deducted in the year you pay it.42 A mailed check counts on the day you mail it, if it clears.4344 A gift on a credit card counts in the year you make the charge.43 A stock certificate you sign over counts the day you deliver or mail it to the charity.4544 Stock sent through your own broker or the company counts only when it is moved into the charity’s name.45

How much senior deduction do they keep?

Plan B keeps all of it for both spouses. Plan C keeps most of it. Plan A loses almost all of it.

For 2025 through 2028, each person 65 or older by year end gets an extra $6,00046 deduction.4647 You get it whether or not you itemize.46 Married couples must file jointly, and each person needs a Social Security number on the return.47 It shrinks by $646% of modified AGI above $75,00046, or $150,00046 on a joint return.46 On a joint return, the cut comes off each spouse’s amount, so a couple who both qualify lose $120 per $1,000 over.48

For this couple, modified AGI is the same as AGI.

Step Plan A Plan B Plan C (2026)
AGI over the joint threshold $248,000 − $150,00046 = $98,000 $148,000 is under the threshold: $0 $173,000 − $150,00046 = $23,000
Reduction per spouse (6%) $98,000 × 6% = $5,880 $0 $23,000 × 6% = $1,380
Senior deduction per spouse $6,00046 − $5,880 = $120 $6,000 $6,00046 − $1,380 = $4,620
Both spouses $240 $12,000 $9,240

What is their taxable income and federal tax?

Plan C has the lowest tax in its first year. Plan B is close behind. Plan A is highest. Taxable income is AGI, minus the deduction they use, minus the senior deduction.

Step Plan A Plan B Plan C (2026)
AGI $248,000 $148,000 $173,000
Less itemized or standard deduction $118,760 $35,500 $69,135
Less senior deduction $240 $12,000 $9,240
Taxable income $129,000 $100,500 $94,625
Top bracket reached 22%49 12%49 12%49
Worked example · tax year 2026Federal income tax under each plan, 2026
Assumptions
  • Married couple, both 74, filing jointly; inputs as listed in the table at the top of this page.
  • Rates are the 2026 ordinary-income brackets for a joint return; every dollar of their income is ordinary income.
  • Federal income tax only. No state tax, no credits, no alternative minimum tax.
  • Both are 65 or older. Each plan's senior deduction, after the 6% cut above $150,000, is shown in the tables.

The tax, layer by layer, on the 2026 joint rate table:

Layer of taxable income Plan A ($129,000) Plan B ($100,500) Plan C ($94,625)
First $24,80049 at 10% $2,480 $2,480 $2,480
Next layer, up to $100,80049, at 12% $76,000 × 12% = $9,120 $75,700 × 12% = $9,084 $69,825 × 12% = $8,379
Above $100,80049 at 22% $28,200 × 22% = $6,204 $0 $0
Federal income tax $17,804 $11,564 $10,859
Compared with Plan A $6,240 less $6,945 less

Plan B’s taxable income sits $300 under the top of the 12% bracket. The 37% bracket starts just above $768,70049 on a joint return. 49 This couple is far below it, so the trim on itemized deductions plays no part. From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.5051.

Where does Plan B’s $6,240 come from?

From three places. AGI is $100,000 lower. More senior deduction is kept. And an itemized deduction is given up. Plan A’s cash gift was deducted, so Plan B doesn’t save tax on the whole $100,000.

Driver Effect on taxable income
QCDs keep $100,000 out of AGI −$100,000
Deduction falls from $118,760 itemized to $35,500 standard +$83,260
Senior deduction rises from $240 to $12,000 −$11,760
Net change in taxable income $129,000 − $100,500 = −$28,500

The $28,500 crosses a bracket line. $28,200 came off the 22% layer and $300 off the 12% layer. $28,200 × 22% + $300 × 12% = $6,204 + $36 = $6,240.

Seen this way, $11,760 of the $28,500 comes from the senior deduction alone. A cash gift can’t bring AGI down, so it can’t protect that piece.

Does Plan C still win over two years?

No. Plan C wins the year it gives the stock, then gives the edge back the next year.

In 2027 they make $75,000 of QCDs. The fund makes the second $25,000 grant. They have no charitable deduction that year. Their other itemized deductions are smaller than the standard deduction, so they take the standard deduction.

Step Plan B, either year Plan C, off year (2027, at 2026 figures)
AGI $148,000 $173,000
Deduction $35,500 standard $35,500 standard
Senior deduction $12,000 $9,240
Taxable income $100,500 $173,000 − $35,500 − $9,240 = $128,260
Federal income tax $11,564 $2,480 + $9,120 + ($27,460 × 22%) = $17,641
Two-year total Plan A Plan B Plan C
Federal income tax $17,804 × 2 = $35,608 $11,564 × 2 = $23,128 $10,859 + $17,641 = $28,500
Built-in gain removed from their account $0 $0 $50,000 − $10,000 = $40,000

On income tax alone, Plan B beats Plan C by $28,500 − $23,128 = $5,372 over two years. Plan C’s upside is the $40,000 of gain that left their account untaxed. 6

That gain matters if they would have sold those shares while alive. Say they planned to hold them until death instead. Cost generally resets to the value on the day you die.52. For a couple, that reset covers the share the spouse who died owned. 53 In community property (anything you own other than cash, such as stock or a fund, not just a house) states, the survivor’s half can reset too. 53 So some or all of that gain may never be taxed.

How does this affect Medicare premiums?

Lower AGI in 2026 can mean lower Medicare premiums in 2028. Here it likely does.

IRMAA uses your AGI plus tax-exempt interest.54 It generally uses the return from two years earlier, so 2026 premiums use 2024 returns.5554 Each person on Medicare whose income is above the line for their filing status pays it.56

The couple has no tax-free interest, so their IRMAA income equals AGI. The 2028 lines aren’t out yet, so the table below uses the 2026 joint lines as a stand-in.

Here is the first line in 2026: Starts above $218,000 joint or $109,000 single in 2026.5758.

So by my reading, the real 2028 lines will likely be higher. This stand-in may make a surcharge look more likely than it is.

Plan 2026 IRMAA income Against the 2026 joint lines (stand-in for 2028)
A: cash $248,000 Above the first joint line, so a surcharge would apply
B: QCDs $148,000 Below the first joint line: no surcharge
C: QCDs + stock to DAF $173,000 Below the first joint line: no surcharge

The donor-advised fund gift in Plan C did nothing for IRMAA income. Plan C stays under the line because of its $75,000 of QCDs. A deduction couldn’t have done it: Itemized, so it lowers taxable income but not AGI.30313233. This page doesn’t put a dollar figure on the premium gap, because 2028 amounts aren’t published. See QCDs and IRMAA.

Which plan looks most like your situation?

These questions can help you see which plan your situation looks like. They don’t pick a plan for you.

  1. Are you 70½ or older with an IRA a QCD can come from? That can include 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.5960. If not, Plan B isn’t open yet.
  2. Do you itemize without the gift? If not, a small cash deduction is still open. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.13141516. Past that, a cash gift changes your tax above a set point. Your itemized total has to pass the standard deduction plus that small cash deduction. And the 0.5% floor trims part of the gift first: From 2026, itemized gifts count only above 0.5% of AGI.383940. Either way it does nothing for AGI, as Plan A shows.
  3. Is your AGI near the senior deduction cut or an IRMAA line? Then the AGI drop from a QCD matters more.
  4. Do you own stock that has gone up, and would you ever sell it? If yes, Plan C’s untaxed gain is worth more.
  5. Do you plan to hold the shares until death? Then the cost reset at death may make giving them less useful.

Questions people also ask

Can you fund a donor-advised fund with an RMD? Not as a QCD. Who can receive one: A public charity, not a donor-advised fund, supporting organization or most private foundations.2425. You can take the RMD as income and then give cash to the fund. But then the RMD is taxed and the gift is just a deduction, as in Plan A.

Is a gift from your IRA tax deductible? No. Left out of income before AGI, so it can't also be deducted.12.

What are the downsides of a QCD? It starts at 70½ and works from an IRA, not a workplace plan. An inherited IRA can work too: A traditional or inherited IRA, or a SEP or SIMPLE IRA with no employer contribution that year.5960. It can’t fund a donor-advised fund, as above. It also gives up the deduction an itemized cash gift would bring. In Plan A that was $98,760 after the floor.

What does the comparison leave out?

Each of these could shift the totals for a real household.

  • State income tax. Not included. State rules vary.
  • Dividends and gains on the rest of the portfolio. Left out so every dollar uses one rate table. Qualified dividends are taxed on a separate table, on top of ordinary income.
  • Social Security tax. Held at 85% taxable in every plan. With much less other income, a QCD can also lower the taxed share of benefits. The test: Half your benefits plus other income, including tax-exempt interest.1920. For such a household that would widen the QCD plan’s lead. For this couple it changes nothing. The assumption above holds them at the 85% maximum in every plan.
  • The 3.8% tax on investment income, and future-year figures. What keeps that tax out of these totals is the threshold, not the size of their income. Their highest AGI, in Plan A, stays under the $250,00061 joint line where the tax starts. A bit more income, or a share sale, would change that. The 2027 figures are stand-ins.
  • IRMAA dollars. Tier placement is shown against 2026 lines. The premium cost isn’t in the tax totals.

The 3.8% net investment income tax applies to the smaller of your investment income or your income above a threshold.62 By my reading, gain on stock you give away and never sell isn’t counted.62

Common mistakes this case study shows

  • Assuming a large cash gift is “fully deductible.” Plan A’s $100,000 lost $1,240 to the floor. From 2026, itemized gifts count only above 0.5% of AGI.383940. And, unlike a QCD, it did nothing to protect $11,760 of senior deduction, because the cut follows AGI.
  • Judging a gift-all-at-once plan by its first year. Plan C looked best in 2026 and worst of the QCD plans over two years.
  • Splitting QCDs between spouses without checking RMDs. Each spouse has their own cap: $111,000 per IRA owner in 2026 ($108,000 in 2025).345. And it counts against their own RMD: Counts toward your RMD for the year.3435.
  • Taking the RMD first. The timing rule above explains why. See QCDs and RMDs.

Sources (62)

Show

  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. 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.

  4. 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.

  5. 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.

  6. Gain is measured by the amount realized on a sale or other disposition 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 (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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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.

  21. 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.

  22. 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.

  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. 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.

  25. 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.

  26. 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.

  27. 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.

  28. 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.

  29. 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.

  30. 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.

  31. 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.

  32. 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.

  33. 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.

  34. 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.

  35. 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.

  36. 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.

  37. 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.)

  38. 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.

  39. 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.

  40. 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.

  41. The percentage limits are measured against the 'contribution base', which for individuals is AGI computed without any net operating loss carryback.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(H)the term “ contribution base ” means adjusted gross income (computed without regard to any net operating loss carryback to the taxable year under section 172 ). Checked 2026-10-09.

  42. 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.

  43. 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.

  44. 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.

  45. 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.

  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. 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.

  48. 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.

  49. 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.

  50. 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.

  51. 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.

  52. 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.

  53. The basis reset at death applies to property acquired from the decedent, so for a married couple it covers the share the deceased spouse owned; a surviving spouse's one-half share of community property is also given that basis under section 1014(b)(6).

    • 26 U.S.C. § 1014 (LII), § 1014(a)Except as otherwise provided in this section, the basis of property in the hands of a person acquiring the property from a decedent or to whom the property passed from a decedent shall, if not sold, exchanged, or otherwise disposed of before the decedent's death by such person, be— (1) the fair market value of the property at the date of the decedent's death, Checked 2026-10-11.
    • 26 U.S.C. § 1014 (LII), § 1014(b)(6)In the case of decedents dying after December 31, 1947, property which represents the surviving spouse's one-half share of community property held by the decedent and the surviving spouse under the community property laws of any State, or possession of the United States or any foreign country, if at least one-half of the whole of the community interest in such property was includible in determining the value of the decedent's gross estate under chapter 11 of subtitle B (section 2001 and following, relating to estate tax) or section 811 of the Internal Revenue Code of 1939 Checked 2026-10-11.

  54. 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).

  55. 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.

  56. 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.

  57. 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.

  58. 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.

  59. 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.

  60. 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.

  61. Net investment income tax: 3.8% of the lesser of net investment income or MAGI over the threshold amount, which is $250,000 on a joint return and $200,000 for a single filer (not indexed). Interest and dividends are net investment income.

    • 26 U.S.C. § 1411 (LII), § 1411(a)(1)a tax equal to 3.8 percent of the lesser of Checked 2026-10-10.
    • 26 U.S.C. § 1411 (LII), § 1411(b)(1)in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $250,000 Checked 2026-10-10.
    • 26 U.S.C. § 1411 (LII), § 1411(b)(3)(3) in any other case, $200,000 Checked 2026-10-10.
    • 26 U.S.C. § 1411 (LII), § 1411(c)(1)(A)(i)gross income from interest, dividends, annuities, royalties, and rents Checked 2026-10-10.

  62. 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.