Retirement Giving
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Every rule this site relies on, with the primary source, the supporting language and the date it was last checked. Professionals: this is the page to bookmark.

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.

2026 long-term capital gain rate thresholds (taxable income): 0% up to $98,900 joint / $49,450 single; 15% up to $613,700 joint / $545,500 single; 20% above.

  • Rev. Proc. 2025-32, § 3.03 Maximum Capital Gains RateMarried Individuals Filing Joint Returns and Surviving Spouse $98,900 $613,700 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 3.03 Maximum Capital Gains RateAll Other Individuals $49,450 $545,500 Checked 2026-10-10.

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.

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.

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.

Section 4967 imposes an excise tax when a donor, donor advisor, or related person advises a DAF distribution that gives such a person a more-than-incidental benefit. In Notice 2017-73 the IRS stated it is considering regulations treating DAF payment for tickets to a charity event as a more-than-incidental benefit, and treating a DAF payment of the deductible portion of a membership fee (with the donor paying the rest) the same way.

  • 26 U.S.C. § 4967 (LII), § 4967(a)(1)receiving, directly or indirectly, a more than incidental benefit as a result of such distribution, a tax equal to 125 percent of such benefit. Checked 2026-10-09.
  • IRS Notice 2017-73, § 1certain distributions from a DAF that pay for the purchase of tickets that enable a donor, donor advisor, or related person under § 4958(f)(7), to attend or participate in a charity-sponsored event result in a more than incidental benefit to such person under § 4967 Checked 2026-10-09.
  • IRS Notice 2017-73, § 3so that the sponsoring organization cannot pay the deductible portion of the membership fee without conferring more than an incidental benefit on the Checked 2026-10-09.

Notice 2017-73 says the IRS is considering regulations under which a DAF distribution to a charity would NOT be a more-than-incidental benefit merely because the donor made a pledge to that charity, if (1) the sponsor makes no reference to the pledge, (2) the donor receives no other more-than-incidental benefit, and (3) the donor does not claim a § 170 deduction for the distribution. This is described as an approach under consideration, not a final rule.

  • IRS Notice 2017-73, § 4will not be considered to result in a more than incidental benefit to a Donor/Advisor under § 4967 merely because the Donor/Advisor has made a charitable pledge to the same charity (regardless of whether the charity treats the distribution as satisfying the pledge), provided that the sponsoring organization makes no reference to the existence of any individual’s pledge when making the DAF distribution. Checked 2026-10-09.
  • IRS Notice 2017-73, § 4a Donor/Advisor does not attempt to claim a charitable contribution deduction under § 170(a) with respect to the DAF distribution Checked 2026-10-09.
  • IRS Notice 2017-73, § 2this notice is intended to provide interim guidance on these specific issues and to solicit additional comments in anticipation of the issuance of further guidance. Checked 2026-10-09.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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

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

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

When a spouse dies, the unused carryover allocable to that spouse can be used only on the deceased spouse's final return (separate return through date of death, or the joint return for the year of death); it cannot be used by the survivor in later years.

  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(d)(4)(iii)any unused portion of an excess charitable contribution which is allocable in accordance with subdivision (i) of this subparagraph to such spouse shall not be treated as paid in the taxable year in which such death occurs or in any subsequent taxable year except on a separate return made for the deceased spouse by a fiduciary for the taxable year which ends with the date of death or on a joint return for the taxable year in which such death occurs. Checked 2026-10-09.

Contributions above the AGI limits carry over for up to 5 years (15 for qualified conservation contributions) and generally keep the same percentage limit in the carryover year.

  • IRS Publication 526 (2025), Carryoversyou may be able to deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Checked 2026-10-09.
  • IRS Publication 526 (2025), CarryoversGenerally, contributions you carry over are subject to the same percentage limits in the year to which they are carried as they were in the year of the contribution. Checked 2026-10-09.

Within each category, current-year contributions are deducted before carryovers, and older carryovers are used before newer ones.

  • IRS Publication 526 (2025), CarryoversFor each category of contributions, you deduct carryover contributions only after deducting all allowable contributions in that category for the current year. If you have carryovers from 2 or more prior years, use the carryover from the earlier year first. Checked 2026-10-09.

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

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

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.

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.

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

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

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.

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.

If total noncash contribution deductions for the year exceed $500, Form 8283 must be attached (Section A for items of $5,000 or less and publicly traded securities; Section B with a qualified appraisal for items over $5,000).

  • IRS Publication 526 (2025), Filing requirements, Form 8283If your total deduction for all noncash contributions for the year is over $500, you must complete Form 8283 and attach it to your Form 1040. Checked 2026-10-09.
  • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)In the case of contributions of property for which a deduction of more than $5,000 is claimed, the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal of such property Checked 2026-10-09.

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.

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

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

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

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

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

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

A CRAT's governing instrument must prohibit additional contributions after the initial contribution (Treas. Reg. § 1.664-2(b)).

  • 26 CFR § 1.664-2 (LII), § 1.664-2(b)A trust is not a charitable remainder annuity trust unless its governing instrument provides that no additional contributions may be made to the charitable remainder annuity trust after the initial contribution . Checked 2026-10-09.

Under Rev. Rul. 70-452 as applied in Rev. Rul. 77-374, if the probability that the life beneficiary(ies) survive exhaustion of CRAT assets is greater than 5%, the remainder does not qualify for a charitable deduction and the CRAT is not exempt under § 664(c). Rev. Proc. 2016-42 provides a sample early-termination provision; a CRAT containing it is not subject to the test.

  • Rev. Proc. 2016-42, 2016-34 I.R.B. 269, Section 2 (Background)Rev. Rul. 70 – 452 holds that, if there is a greater than 5 percent probability that payment of the annuity will defeat the charity’s interest by exhausting the trust assets by the end of the trust term, then the possibility that the charitable transfer will not become effective is not so remote as to be negligible. Checked 2026-10-09.
  • Rev. Proc. 2016-42, 2016-34 I.R.B. 269, Section 2 (Background)then the charitable remainder interest of the CRAT does not qualify for an income, gift, or estate tax charitable deduction and the CRAT is not exempt from income tax under § 664(c). Checked 2026-10-09.
  • Rev. Proc. 2016-42, 2016-34 I.R.B. 269, Section 7A CRAT containing the sample provision will not be subject to the probability of exhaustion test set forth in Rev. Rul. 70-452, 1970-2 C.B.199, and applied in Rev. Rul. 77-374, 1977-2 C.B. 329. Checked 2026-10-09.

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.

A qualified distribution from a Roth IRA is not includible in gross income (§ 408A(d)(1)).

  • 26 U.S.C. § 408A (LII), § 408A(d)(1)(A)Any qualified distribution from a Roth IRA shall not be includible in gross income. Checked 2026-10-09.

§ 1014(e) denies the step-up for appreciated property the decedent received by gift within one year of death when it passes back to the donor or the donor's spouse.

  • 26 U.S.C. § 1014 (LII), § 1014(e)(1)appreciated property was acquired by the decedent by gift during the 1-year period ending on the date of the decedent’s death, and (B) such property is acquired from the decedent by (or passes from the decedent to) the donor of such property (or the spouse of such d Checked 2026-10-09.

Basis is the amount of your investment in property for tax purposes; the basis of property you buy is usually its cost.

Form 8606 is used to report nondeductible contributions to traditional IRAs, distributions from traditional, SEP or SIMPLE IRAs when the owner has ever made nondeductible contributions, and conversions to Roth IRAs.

  • About Form 8606, Nondeductible IRAs, Page summaryUse Form 8606 to report: Nondeductible contributions you made to traditional IRAs. Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs. Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs. Checked 2026-10-10.

Public Law 119-21 (H.R. 1, enacted July 4, 2025) is an act to provide for reconciliation with no short title for the whole act; it is popularly called the One Big Beautiful Bill Act, and the IRS refers to it both as the One, Big, Beautiful Bill Act and as the Working Families Tax Cuts.

  • Public Law 119-21 (GovInfo), Act headerPublic Law 119-21 119th Congress An Act To provide for reconciliation pursuant to title II of H. Con. Res. 14. <<NOTE: July 4, 2025 - [H.R. 1]>> Checked 2026-10-10.
  • Working Families Tax Cuts (IRS), Page introThe Working Families Tax Cuts significantly affect federal taxes, credits and deductions. Checked 2026-10-10.
  • Working Families Tax Cuts (IRS), Resources and guidanceExpanded Availability of Health Savings Accounts under the One, Big, Beautiful Bill Act (OBBA) Checked 2026-10-10.

The required beginning date is the date an IRA owner must take the first required minimum distribution: April 1 of the year following the year the owner reaches the RMD age.

The SECURE 2.0 Act of 2022 is Division T of Public Law 117-328 (H.R. 2617, enacted December 29, 2022). Its section 107 raised the RMD required-beginning-date age, and its section 307 created the one-time QCD to a split-interest entity and indexed the QCD limit.

  • Public Law 117-328 (GovInfo), Act headerPublic Law 117-328 117th Congress An Act Making consolidated appropriations for the fiscal year ending September 30, 2023, and for providing emergency assistance for the situation in Ukraine, and for other purposes. <<NOTE: Dec. 29, 2022 - [H.R. 2617]>> Checked 2026-10-10.
  • Public Law 117-328 (GovInfo), Division T, sec. 1Short Title.--This division may be cited as the ``SECURE 2.0 Act of 2022''. Checked 2026-10-10.
  • Public Law 117-328 (GovInfo), Division T, sec. 107SEC. 107. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY DISTRIBUTIONS. Checked 2026-10-10.
  • Public Law 117-328 (GovInfo), Division T, sec. 307SEC. 307. ONE-TIME ELECTION FOR QUALIFIED CHARITABLE DISTRIBUTION TO SPLIT-INTEREST ENTITY; INCREASE IN QUALIFIED CHARITABLE DISTRIBUTION LIMITATION. Checked 2026-10-10.

A § 509(a)(3) supporting organization is organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more specified public charities, and is operated, supervised or controlled by or in connection with them.

  • 26 U.S. Code § 509, § 509(a)(3)(3) an organization which— (A) is organized, and at all times thereafter is operated, exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more specified organizations described in paragraph (1) or (2), Checked 2026-10-10.

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.

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.

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.

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.

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.

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.

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

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

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.

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.

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.

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.

The excludable QCD amount is reduced by the total deductible IRA contributions made for years ending on or after the owner reached 70½, less amounts already used to reduce prior years' QCDs (effective for tax years after 2019, SECURE Act). The reduced amount is taxable but may be deductible as a charitable contribution if itemizing.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(A), second sentencethe aggregate amount of deductions allowed to the taxpayer under section 219 for all taxable years ending on or after the date the taxpayer attains age 70½ Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 2, Offset of QCDs by amounts contributed after age 70½Beginning in tax years after December 31, 2019, the amount of QCDs that you can exclude from income is reduced by the excess of the aggregate amount of IRA contributions you deducted Checked 2026-10-09.

The custodian reports the QCD as an ordinary IRA distribution on Form 1099-R (code 7 for an owner, code 4 for an inherited IRA); there is no QCD-specific code on 2025 forms. For 2026, the new code Y may optionally be added. On Form 1040 (2025), the taxpayer enters the gross amount on line 4a, the non-QCD taxable portion on line 4b, and checks box 2 on line 4c. The older "write QCD next to line 4b" instruction has been replaced by the line 4c checkbox on the 2025 form.

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

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

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.

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.

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).

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.

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.

On the 2025 Form 1040, if all or part of an IRA distribution is a QCD, the total goes on line 4a; if only part is a QCD, the non-QCD part goes on line 4b; box 2 on line 4c is checked. When the IRA has nondeductible basis and a distribution goes to charity, Form 8606 is filed (Pub 590-B Amy example), and the basis portion may be deductible on Schedule A subject to AGI limits.

  • Instructions for Form 1040 (2025), Lines 4a and 4b, Exception 3If all or part of the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 4a. If the total amount distributed is a QCD, enter -0- on line 4b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 4b unless Exception 2 applies to that part. Check box 2 on line 4c. Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 2, QCDs, Amy exampleBecause Amy made a distribution of nondeductible contributions from her IRA, she must file Form 8606 with her return. Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 2, QCDs, Amy examplethe $5,000 portion of the distribution attributable to the nondeductible contributions can be deducted as a charitable contribution, subject to adjusted gross income (AGI) limits. Checked 2026-10-09.

Under the current Form 1099-R instructions, a QCD may be reported with code Y paired with code 7 (non-inherited IRA), code 4 (inherited IRA), or code K (IRA assets without a readily available fair market value). Code Y is optional for tax year 2026.

  • Instructions for Forms 1099-R and 5498 (current online version, covers 2026), Box 7a, Qualified charitable distributions (QCDs)To report a QCD, use code Y with: Code 7 for a QCD from a non-inherited (normal distribution) IRA, Code 4 for a QCD from an inherited (death distribution) IRA, or Code K for a QCD reporting distributions of traditional IRA assets not having a readily available FMV that are either from non-inherited or inherited IRAs. Checked 2026-10-09.

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.

Pub 590-B (2025) reminds readers that the IRS will not assert the excise tax for certain missed 2024 RMDs if requirements are met (Notice 2024-35).

  • IRS Publication 590-B (2025), Reminders, Excise tax relief for certain 2024 required minimum distributionsThe IRS will not assert an excise tax in 2024 for missed required minimum distributions if certain requirements are met. Checked 2026-10-09.

If you do not receive the full minimum distribution for a year, you may owe an additional tax on the amount that should have been distributed.

  • Instructions for Form 1040 (2025), Lines 4a and 4b, More than one distributionIf you don’t receive the minimum distribution amount, you may have to pay an additional tax on the amount that should have been distributed. Checked 2026-10-09.

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.

An owner of more than one traditional IRA must figure a separate RMD for each IRA but may total the amounts and take the total from any one or more of the IRAs. The same applies to a designated beneficiary of more than one IRA owned by the same decedent.

  • IRS Publication 590-B (2025), Ch. 1, Miscellaneous Rules for Required Minimum Distributions, More than one IRAyou must determine a separate required minimum distribution for each IRA. However, you can total these minimum amounts and take the total from any one or more of the IRAs. The same rule applies if you are a designated beneficiary of more than one IRA that was owned by a single decedent. Checked 2026-10-09.

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.

A surviving spouse who inherits a traditional IRA can generally treat it as their own (by designating themselves owner or rolling it over) or remain a beneficiary. A non-spouse beneficiary cannot treat an inherited IRA as their own and cannot roll amounts into or out of it, though a trustee-to-trustee transfer to another inherited IRA in the decedent's name is allowed.

  • IRS Publication 590-B (2025), Ch. 1, What if You Inherit an IRA, Inherited from spouseIf you inherit a traditional IRA from your spouse, you generally have the following two choices. Treat it as your own IRA by designating yourself as the account owner; or Treat it as your own by rolling it over into your IRA Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, What if You Inherit an IRA, Inherited from someone other than spouseIf you inherit a traditional IRA from anyone other than your deceased spouse, you can't treat the inherited IRA as your own. Checked 2026-10-09.

For IRA owners who die after 2019, a designated beneficiary who is not an eligible designated beneficiary must empty the account by the end of the 10th year after death. Eligible designated beneficiaries are the surviving spouse, the owner's minor child, a disabled or chronically ill individual, or someone not more than 10 years younger than the owner. If the owner died before the required beginning date and the 10-year rule applies, no distribution is required before the 10th year; if the owner died on or after the required beginning date, the final regulations require annual distributions to continue until the account is fully distributed. Eligible designated beneficiaries generally use life-expectancy distributions; a minor child's 10-year period starts at majority.

  • IRS Publication 590-B (2025), What's New / Reminders, Modification of required distribution rules for designated beneficiariesAll distributions must be made by the end of the 10th year after death, except for distributions made to certain eligible designated beneficiaries. Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, IRA Beneficiaries, Eligible designated beneficiariesAn IRA beneficiary is an eligible designated beneficiary if the beneficiary is the owner's surviving spouse, the owner's minor child, a disabled individual, a chronically ill individual, or any other individual who is not more than 10 years younger than the IRA owner. Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, Payment under the 10-year ruleIf the IRA owner dies before the required beginning date and the 10-year rule applies, no distribution is required for any year before the 10th year. Checked 2026-10-09.
  • 26 CFR § 1.401(a)(9)-5 (LII), § 1.401(a)(9)-5(d)(1)(i)The requirement to take an annual distribution in accordance with the preceding sentence continues to apply for every distribution calendar year until the employee 's interest is fully distributed. Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, Individual designated beneficiariesThe terms of most IRAs require individual designated beneficiaries, who are eligible designated beneficiaries, to take required minimum distributions using the life expectancy rules Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, 10-year ruleupon the minor child beneficiary reaching the age of majority Checked 2026-10-09.

Under the pre-2024 RMD regulation (Treas. Reg. § 1.401(a)(9)-2, A-3, as in effect through 2024-09-16), a person attains age 70½ on the date six calendar months after the 70th anniversary of birth; a June 30 birthday reaches 70½ on December 30. The QCD statute uses 'attained age 70½' without its own definition, so applying this RMD-regulation definition to QCDs is an inference. The 2024 final regulations no longer contain the A-3 definition.

  • 26 CFR 1.401(a)(9)-2 (eCFR point-in-time, 2024-01-01), Q-3/A-3An employee attains age 70 1/2 as of the date six calendar months after the 70th anniversary of the employee's birth. For example, if an employee's date of birth was June 30, 1933, the 70th anniversary of such employee's birth is June 30, 2003. Such employee attains age 70 1/2 on December 30, 2003. Checked 2026-10-09.

The 2024 final RMD regulations leave the applicable age for people born in 1959 reserved; they set 73 for births 1951-1958 and 75 for births on or after January 1, 1960. Proposed regulations published July 19, 2024 would set the applicable age for people born in 1959 at 73. As of 2026-10-09 the eCFR shows no amendment to § 1.401(a)(9)-2 after 2024-09-17, so the proposal has not been finalized.

The election to apply the 50% limit to capital gain property (deducting basis instead of fair market value) must be made on the original return or on an amended return filed by the due date for filing the original return.

  • IRS Publication 526 (2025), Limits on Deductions, Capital gain property electionYou must make the choice on your original return or on an amended return filed by the due date for filing the original return. Checked 2026-10-09.

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.

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

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

SSA describes IRMAA as a set of statutory percentage-based sliding-scale tables, with three sets of tables, including a separate table for married filing separately.

Under § 72(b), the part of each annuity payment excluded from income is the ratio of the investment in the contract to the expected return; the excluded amount cannot exceed the unrecovered investment, so once the investment is recovered later payments are fully includible.

  • 26 U.S.C. § 72 (LII), § 72(b)(1)which bears the same ratio to such amount as the investment in the contract (as of the annuity starting date) bears to the expected return under the contract (as of such date) Checked 2026-10-09.
  • 26 U.S.C. § 72 (LII), § 72(b)(2)shall not exceed the unrecovered investment in the contract immediately before the receipt of such amount Checked 2026-10-09.

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.

Distributions from a charitable gift annuity funded with cash or capital gain property are reported on Form 1099-R: the total distributed in the year in box 1, and any amount taxable as capital gain in box 3.

  • Instructions for Forms 1099-R and 5498 (2026), Specific Instructions, Charitable gift annuitiesIf cash or capital gain property is donated in exchange for a charitable gift annuity, report distributions from the annuity on Form 1099-R. Checked 2026-10-10.
  • Instructions for Forms 1099-R and 5498 (2026), Box 3, Charitable gift annuitiesReport in box 3 any amount from a charitable gift annuity that is taxable as a capital gain. Report in box 1 the total amount distributed during the year. Checked 2026-10-10.

An IRMAA life-changing-event determination applies only to the beneficiary who reports it; SSA does not extend its findings to a nonreporting spouse or ex-spouse, who must contact SSA themselves.

  • SSA POMS HI 01120.005 Life Changing Events, B.1, NOTEIf a beneficiary reports an LCE with a significant reduction in MAGI that could affect a spouse or ex-spouse, we do not extend its findings to the nonreporting spouse. If the LCE affects the nonreporting spouse, it is their responsibility to contact us. Checked 2026-10-10.

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.

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.

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.

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.

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.

Property received as a lifetime gift generally takes the donor's basis (carryover basis), so the recipient owes tax on the donor's built-in gain when selling; for determining a loss, basis is limited to fair market value at the time of the gift if lower.

  • 26 U.S.C. § 1015 (LII), § 1015(a)If the property was acquired by gift after December 31, 1920 , the basis shall be the same as it would be in the hands of the donor or the last preceding owner by whom it was not acquired by gift, Checked 2026-10-10.

When a taxpayer sells or transfers shares bought on different dates or at different prices and does not adequately identify the lot, the shares are charged against the earliest lot acquired (first in, first out). Identifying specific lots lets a donor choose which shares are transferred.

  • 26 CFR § 1.1012-1 (LII), § 1.1012-1(c)(1)(i)if a taxpayer sells or transfers shares of stock in a corporation that the taxpayer purchased or acquired on different dates or at different prices and the taxpayer does not adequately identify the lot from which the stock is sold or transferred, the stock sold or transferred is charged against the earliest lot the taxpayer purchased or acquired Checked 2026-10-10.

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.

Federal law sets no minimum annual payout for a donor-advised fund. Sections 4966 and 4967 tax certain DAF distributions but contain no annual distribution requirement; the Code's minimum-distribution tax (§ 4942) applies to private foundations, and a DAF sponsor cannot be a private foundation. Treasury's 2023 proposed DAF regulations describe payout requirements as applicable to private foundations and supporting organizations, not DAFs.

Treasury and the IRS proposed regulations under § 4966 on November 14, 2023 (REG-142338-07, 88 FR 77922). They are proposed to apply only for taxable years ending after final regulations are published. As of 2026-10-10 the Federal Register shows no final rule; the later documents are hearing notices and a correction (2024).

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

A contribution to a DAF is also not deductible if the sponsoring organization is a type III supporting organization that is not functionally integrated (§ 170(f)(18)(A)(ii)), in addition to the war veterans' organization, fraternal society and cemetery company exclusions in § 170(c)(3)-(5).

  • 26 U.S.C. § 170 (LII), § 170(f)(18)(A)(i) described in paragraph (3), (4), or (5) of subsection (c), or (ii) a type III supporting organization (as defined in section 4943(f)(5)(A) ) which is not a functionally integrated type III supporting organization Checked 2026-10-10.

On the 2026 Form 1040 (IRS early-release DRAFT, created 8/19/26), the non-itemizer charitable deduction has its own line, 12f, separate from line 12e (standard deduction or itemized deductions). Draft; confirm against the final form.

On the 2026 Schedule A (IRS early-release DRAFT, created 5/12/26), itemized charitable gifts flow through a new 'Charitable Contribution Limitation Worksheet' (line 13), with prior-year carryovers on a separate line 14. Draft; confirm against the final form and its instructions.

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.

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.

The § 170(p) non-itemizer charitable deduction applies 'in the case of any taxable year' in which the individual does not elect to itemize; the provision as amended by P.L. 119-21 contains no termination date (it applies to taxable years beginning after December 31, 2025).

  • 26 U.S.C. § 170 (LII), § 170(p)In the case of any taxable year, if the individual does not elect to itemize deductions for such taxable year, 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 2026-10-10.

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.

For QCD purposes, § 408(d)(8)(D) overrides § 72: the distribution is treated as includible in gross income up to the amount that would be includible if all of the individual's IRAs were distributed and treated as one contract, so a QCD comes first from the taxable portion of all IRAs combined.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(D)the entire amount of the distribution shall be treated as includible in gross income without regard to subparagraph (A) to the extent that such amount does not exceed the aggregate amount which would have been so includible if all amounts in all individual retirement plans of the individual were distributed during such taxable year and all such plans were treated as 1 contract Checked 2026-10-10.

IRS notices set each year's QCD limit: Notice 2023-75 raised it from $100,000 to $105,000 (2024) and the split-interest amount from $50,000 to $53,000; Notice 2024-80 raised it from $105,000 to $108,000 (2025); Notice 2025-67 raised it from $108,000 to $111,000 (2026) and the split-interest amount from $54,000 to $55,000. None of the three notices contains the figure $115,000.

The inflation adjustment to the QCD dollar amounts (the annual limit in § 408(d)(8)(A) and the split-interest amount in (F)) applies for taxable years beginning after 2023, uses the cost-of-living adjustment with calendar year 2022 as the base, and is rounded to the nearest multiple of $1,000.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(G)(i)In the case of any taxable year beginning after 2023, each of the dollar amounts in subparagraphs (A) and (F) shall be increased by an amount equal to Checked 2026-10-10.
  • 26 U.S.C. § 408 (LII), § 408(d)(8)(G)(ii)If any dollar amount increased under clause (i) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000. Checked 2026-10-10.

Mutual fund capital gain distributions are reported on Form 1099-DIV and are taxed as long-term capital gains for the year received, regardless of how long the fund shares were held, so they add to that year's income.

  • IRS Publication 550, Ch. 1, Capital Gain DistributionsReport capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. Checked 2026-10-10.

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

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

Under the 2026 Form 1099-R instructions, code Y must be used together with code 4, 7 or K; none of those is a Roth IRA distribution code (Roth IRA distributions use codes Q, T or J), so the instructions provide no code Y combination for a QCD from a Roth IRA. Code Y is optional for tax year 2026.

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

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

A QCD is not subject to federal income tax withholding: an IRA owner who requests a QCD is deemed to have elected out of withholding. The IRA trustee may rely on the owner's reasonable representations that the distribution qualifies.

  • IRS Notice 2007-7, Q-40/A-40A qualified charitable distribution is not subject to withholding under § 3405 because an IRA owner that requests such a distribution is deemed to have elected out of withholding under § 3405(a)(2). Checked 2026-10-10.
  • IRS Notice 2007-7, Q-40/A-40the IRA trustee, custodian, or issuer may rely upon reasonable representations made by the IRA owner. Checked 2026-10-10.

Neither the QCD statute nor fetched IRS guidance limits a QCD to cash; the statute covers 'any distribution' from an IRA that meets the conditions. The Form 1099-R instructions provide a code combination (Y with K) for a QCD of traditional IRA assets that do not have a readily available fair market value, so the IRS reporting rules contemplate non-cash QCDs.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)means any distribution from an individual retirement plan Checked 2026-10-10.
  • Instructions for Forms 1099-R and 5498 (2026), Box 7a, Qualified charitable distributions (QCDs)Code K for a QCD reporting distributions of traditional IRA assets not having a readily available FMV that are either from non-inherited or inherited IRAs. Checked 2026-10-10.

The yearly RMD can be taken in installments (monthly, quarterly or otherwise) or at once, as long as total distributions for the year are at least the required amount.

  • IRS Publication 590-B (2025), Ch. 1, Required Minimum DistributionsThe yearly required minimum distribution can be taken in a series of installments (monthly, quarterly, etc.) as long as the total distributions for the year are at least as much as the minimum required amount. Checked 2026-10-10.

A required minimum distribution can't be rolled over, and because a Roth conversion is treated as a rollover for Roth IRA purposes, the RMD amount for a year can't be converted to a Roth IRA.

  • IRS Publication 590-B (2025), Ch. 1, Required Minimum DistributionsAmounts that must be distributed (required minimum distributions) during a particular year aren't eligible for rollover treatment. Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 2, Are Distributions Taxable?, CautionAlthough a conversion of a traditional IRA is considered a rollover for Roth IRA purposes Checked 2026-10-10.

The average basis method (averaging the cost of identical shares) is available for shares of a regulated investment company (mutual funds) and for shares acquired after 2010 through a dividend reinvestment plan, as an exception to the lot-identification rules.

  • 26 CFR § 1.1012-1 (LII), § 1.1012-1(e)(1)a taxpayer may use the average basis method described in paragraph (e)(7) of this section to determine the cost or other basis of identical shares of stock if— (i) The taxpayer leaves shares of stock in a regulated investment company (as defined in paragraph (e)(5) of this section) or shares of stock acquired after December 31, 2010, in connection with a dividend reinvestment plan Checked 2026-10-10.

A person who was a beneficiary at the owner's death but is no longer a beneficiary on September 30 of the year after death, because they disclaimed or received their entire benefit, is not taken into account in determining the designated beneficiary.

  • IRS Publication 590-B (2025), Ch. 1, Distributions After Owner's Death — Date the designated beneficiary is determinedAny person who was a beneficiary on the date of the owner's death, but isn't a beneficiary on September 30 of the calendar year following the calendar year of the owner's death (because, for example, the beneficiary disclaimed entitlement or received their entire benefit), won't be taken into account in determining the designated beneficiary. Checked 2026-10-10.

For an ERISA employer plan (such as a 401(k)), the plan administrator pays benefits to the beneficiary named under the plan documents. In Kennedy v. Plan Administrator for DuPont (2009), the Supreme Court held the administrator properly paid a former spouse who was still the named beneficiary, despite a divorce decree in which she had waived the benefits.

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.

If an IRA has no designated beneficiary (for example, the estate is the beneficiary): when the owner died before the required beginning date, the 5-year rule applies (the account must be emptied by December 31 of the year containing the fifth anniversary of death); when the owner died on or after the required beginning date, distributions use the owner's remaining life expectancy.

  • IRS Publication 590-B (2025), Ch. 1, Distributions After Owner's Death — Owner Died Before Required Beginning DateIf the owner’s beneficiary isn’t an individual (for example, if the beneficiary is the owner’s estate), the 5-year rule , discussed later, applies. Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 1, 5-year ruleThe 5-year rule requires the IRA beneficiaries who are not taking life expectancy payments to withdraw the entire balance of the IRA by December 31 of the year containing the fifth anniversary of the owner’s death. Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 1, Owner's life expectancyYou use the owner’s life expectancy to calculate required minimum distributions when the owner dies on or after the required beginning date and there is no designated beneficiary as of September 30 of the year following the year of the owner’s death. In this case, use the owner’s life expectancy for their age as of the owner’s birthday in the year of death and reduce it by 1 for each subsequent year. Checked 2026-10-10.

When you transfer shares of a stock bought at different dates or prices and do not adequately identify the lot, the shares transferred are charged against the earliest lot acquired (first-in, first-out). For shares held by a broker, an adequate identification is made if you specify the particular shares to the broker at the time of the transfer and the broker confirms that specification in writing within a reasonable time.

  • 26 CFR § 1.1012-1 (LII), § 1.1012-1(c)(1)(i)if a taxpayer sells or transfers shares of stock in a corporation that the taxpayer purchased or acquired on different dates or at different prices and the taxpayer does not adequately identify the lot from which the stock is sold or transferred, the stock sold or transferred is charged against the earliest lot the taxpayer purchased or acquired to determine the basis and holding period of the stock Checked 2026-10-10.
  • 26 CFR § 1.1012-1 (LII), § 1.1012-1(c)(3)(i)Where the stock is left in the custody of a broker or other agent, an adequate identification is made if— (a) At the time of the sale or transfer , the taxpayer specifies to such broker or other agent having custody of the stock the particular stock to be sold or transferred, and (b) Within a reasonable time thereafter, confirmation of such specification is set forth in a written document from such broker or other agent. Checked 2026-10-10.

For the required minimum distribution rules, a designated beneficiary is an individual designated under the plan (by the plan's default terms or the owner's affirmative election). Someone who receives the account under a will or state law is not a beneficiary designated under the plan unless the plan designation names them. A non-individual such as the estate is not a designated beneficiary.

  • 26 CFR § 1.401(a)(9)-4 (eCFR), § 1.401(a)(9)-4(a)(3)The fact that an employee's interest under the plan passes to a certain person under a will or otherwise under applicable State law does not make that person a beneficiary designated under the plan absent a designation under the plan. Checked 2026-10-10.
  • 26 CFR § 1.401(a)(9)-4 (eCFR), § 1.401(a)(9)-4(a)(4), (b)A beneficiary designated under the plan may be designated by a default election under the terms of the plan or, if the plan so provides, by an affirmative election of the employee (or the employee's surviving spouse). Checked 2026-10-10.
  • 26 CFR § 1.401(a)(9)-4 (eCFR), § 1.401(a)(9)-4(b)A person that is not an individual, such as the employee's estate, is not a designated beneficiary. Checked 2026-10-10.

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

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

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

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

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

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

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

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

A carryover still exists if the gift year itself was a standard-deduction year, but in a later carryover year in which the taxpayer takes the standard deduction, part of the carryover is treated as used (paid) in that year without being allowed as a deduction, which shrinks what is left for later years.

  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(a)(2)The carryover provisions apply with respect to contributions made during a taxable year in excess of the applicable percentage limitation even though the taxpayer elects under section 144 to take the standard deduction in that year Checked 2026-10-10.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(2) and (c)(1)(ii)there shall be treated as paid (but not allowable as a deduction Checked 2026-10-10.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(3), Example 2B is required to treat such $500 as a charitable contribution paid in 1972 Checked 2026-10-10.

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.

IRS Publication 526's Worksheet 2 is not for years with a carryover, and the publication does not cover carryover computations for some situations, including claiming the standard deduction in a carryover year or becoming a surviving spouse; it suggests a tax practitioner for those.

  • IRS Publication 526 (2025), Charitable Contributions, Worksheet 2. Applying the Deduction Limits, CautionDon’t use this worksheet to figure the contributions you can deduct this year if you have a carryover of a charitable contribution from an earlier year. Checked 2026-10-10.
  • IRS Publication 526 (2025), Charitable Contributions, Additional rules for carryoversClaim the standard deduction in a carryover year, or Become a surviving spouse. Because of their complexity and the limited number of taxpayers to whom these additional rules apply, they aren’t discussed in this publication. Checked 2026-10-10.

Contributions to § 170(b)(1)(A) organizations other than cash (for example capital gain property deducted at basis under the 50% election) are limited to 50% of the contribution base.

  • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)shall be allowed to the extent that the aggregate of such contributions does not exceed 50 percent of the taxpayer’s contribution base for the taxable year Checked 2026-10-10.

Adjusted net capital gain (long-term gains and qualified dividends) is taxed at 0%, 15% or 20% depending on where it stacks on top of ordinary taxable income (§ 1(h)(1)).

  • 26 U.S.C. § 1 (LII), § 1(h)(1)(B)0 percent of so much of the adjusted net capital gain (or, if less, taxable income) Checked 2026-10-10.
  • 26 U.S.C. § 1 (LII), § 1(h)(1)(C)15 percent of the lesser of Checked 2026-10-10.
  • 26 U.S.C. § 1 (LII), § 1(h)(1)(D)20 percent of the adjusted net capital gain (or, if less, taxable income) in excess of the sum of Checked 2026-10-10.

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.

IRS Publication 526 Worksheet 2 applies the AGI limits in order: cash to 50% limit organizations up to 60% of AGI; other noncash gifts to them up to 50% of AGI less the deductible cash; capital gain property deducted at FMV up to the smallest of the gift, 50% of AGI less the 50% and 60% gifts, or 30% of AGI. Its example: AGI $50,000, $2,000 cash and land worth $28,000 to a place of worship gives $2,000 + $15,000 deducted and $13,000 carried over. A carryover is deducted after the current-year gifts in its category.

  • IRS Publication 526, Worksheet 2, line 16Subtract line 13 from line 15 Checked 2026-10-10.
  • IRS Publication 526, Worksheet 2, lines 26-3026. Multiply line 11 by 0.5 26 27. Add lines 9 and 10 27 28. Subtract line 27 from line 26 28 29. Multiply line 11 by 0.3 29 30. Deductible amount. Enter the smallest of line 8, 28, or 29 Checked 2026-10-10.
  • IRS Publication 526, Worksheet 2 exampleYour deduction for the land is limited to $15,000 (30% × $50,000). The unused part of the contribution ($13,000) can be carried over. For this year, your deduction is limited to $17,000 ($2,000 + $15,000). Checked 2026-10-10.
  • IRS Publication 526, CarryoversFor each category of contributions, you deduct carryover contributions only after deducting all allowable contributions in that category for the current year. Checked 2026-10-10.

2026 tax rate tables (Rev. Proc. 2025-32 § 4.01): the rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%, and the table states the tax at the start of each bracket (MFJ: $2,480 at $24,800, $11,600 at $100,800, $35,932 at $211,400, $82,048 at $403,550, $116,896 at $512,450, $206,583.50 at $768,700; single: $1,240 at $12,400, $5,800 at $50,400, $17,966 at $105,700, $41,024 at $201,775, $58,448 at $256,225, $192,979.25 at $640,600).

  • Rev. Proc. 2025-32, § 4.01 Table 1 (MFJ)10% of the taxable income Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 1 (MFJ)$2,480 plus 12% of the excess over $24,800 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 1 (MFJ)$11,600 plus 22% of the excess over $100,800 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 1 (MFJ)$35,932 plus 24% of the excess over $211,400 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 1 (MFJ)$82,048 plus 32% of the excess over $403,550 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 1 (MFJ)$116,896 plus 35% of the excess over $512,450 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 1 (MFJ)$206,583.50 plus 37% of the excess over $768,700 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 3 (single)$1,240 plus 12% of the excess over $12,400 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 3 (single)$5,800 plus 22% of the excess over $50,400 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 3 (single)$17,966 plus 24% of the excess over $105,700 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 3 (single)$41,024 plus 32% of the excess over $201,775 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 3 (single)$58,448 plus 35% of the excess over $256,225 Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 4.01 Table 3 (single)$192,979.25 plus 37% of the excess over $640,600 Checked 2026-10-10.

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).

For the charitable deduction rules (including the 0.5% floor), contribution base means AGI figured without any net operating loss carryback to the year.

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

Define Financial, LLC is an SEC-registered investment adviser (SEC registration approved 8/6/2021), CRD/firm ID 286648, SEC file number 801-122024, per its IAPD record (ADV filed 05/18/2026). Shown on /disclosures/.

  • SEC IAPD firm record, Define Financial, LLC, basicInformation / registrationStatus (API api.adviserinfo.sec.gov/search/firm/286648)"firmId": 286648, "firmName": "DEFINE FINANCIAL, LLC" ... "iaSECNumber": "122024", "iaSECNumberType": "801" ... {"secJurisdiction": "SEC", "status": "Approved", "effectiveDate": "8/6/2021"} Checked 2026-10-10.

An IRA distribution paid to the owner is generally not taxed if it is paid back into an IRA within 60 days of receipt (§ 408(d)(3)), subject to that section's limits.

  • 26 U.S.C. § 408(d)(3), § 408(d)(3)(A)(i)not later than the 60th day after the day on which he receives the payment or distribution Checked 2026-10-10.

IRMAA applies to beneficiaries enrolled in Part B and/or a Part D drug plan (or MA plan with drug coverage) whose MAGI is above the threshold; the Part D amount applies only to someone with that drug coverage.

  • SSA POMS HI 01101.001, Who pays IRMAAMedicare Part B and a Medicare prescription drug plan (PDP) Checked 2026-10-10.

A distribution is a QCD only to the extent it would be includible in gross income without the QCD exclusion (§ 408(d)(8)(B) flush language). A qualified Roth IRA distribution is not includible, so it cannot be a QCD.

  • 26 U.S.C. § 408(d)(8)(B), § 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 2026-10-10.

The 3.8% net investment income tax applies to the lesser of net investment income or modified adjusted gross income above a threshold ($250,000 joint, $200,000 most others; not indexed). IRA distributions are not net investment income, but a taxable IRA distribution raises AGI and so the MAGI used for the threshold; an amount excluded from gross income does not.

  • 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 2026-10-10.
  • 26 U.S.C. § 1411 (LII), § 1411(c)(5)The term “ net investment income ” shall not include any distribution from a plan or arrangement described in section 401(a), 403(a), 403(b), 408, 408A, or 457(b). Checked 2026-10-10.
  • 26 U.S.C. § 1411 (LII), § 1411(d)the term “ modified adjusted gross income ” means adjusted gross income increased by the excess of— (1) the amount excluded from gross income under section 911(a)(1) Checked 2026-10-10.

To fix a previously filed return (for example, to claim an income exclusion that was missed), a taxpayer files Form 1040-X. To claim a refund, Form 1040-X must be filed within 3 years after the original return was filed or within 2 years after the tax was paid, whichever is later; returns filed early are treated as filed on the due date.

  • IRS Topic no. 308, Amended returns, When to fileTo claim a refund, you must file Form 1040-X within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Checked 2026-10-10.
  • IRS Topic no. 308, Amended returns, OverviewUse Form 1040-X, Amended U.S. Individual Income Tax Return to correct a previously filed Form 1040 series return or to change amounts previously adjusted by the IRS. Checked 2026-10-10.

IRS guidance says to keep records for 3 years in the ordinary case, and for 3 years from filing or 2 years from paying the tax (whichever is later) if you file a claim for credit or refund after filing; longer periods apply in other listed situations.

  • IRS, How long should I keep records?, Period of limitations that apply to income tax returnsKeep records for 3 years if situations (4), (5), and (6) below do not apply to you. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Checked 2026-10-10.

An RMD is generally figured for each account by dividing the account's prior December 31 balance by a life expectancy factor from the IRS tables in Publication 590-B. Because the balance drives the figure, money that leaves the IRA this year (including a charitable distribution) lowers the balance used for later years' RMDs, all else equal.

  • IRS, Retirement plan and IRA required minimum distributions FAQs, Q4Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that the IRS publishes in Tables in Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) . Checked 2026-10-10.
  • IRS, Retirement plan and IRA required minimum distributions FAQs, Q2 (example)Your first RMD is due by April 1, 2025, based on your account balance on December 31, 2023, and Your second RMD is due by December 31, 2025, based on your account balance on December 31, 2024. Checked 2026-10-10.

A charitable lead trust gives charity the payments first. An income tax deduction for a lead (income) interest given in trust is allowed only if the charity's interest is a guaranteed annuity or a fixed percentage of the trust's yearly value, and the donor is treated as the owner of the trust for income tax purposes (so the donor is taxed on the trust's income).

  • 26 U.S.C. § 170 (LII), § 170(f)(2)(B)No deduction shall be allowed under this section for the value of any interest in property (other than a remainder interest) transferred in trust unless the interest is in the form of a guaranteed annuity or the trust instrument specifies that the interest is a fixed percentage distributed yearly of the fair market value of the trust property (to be determined yearly) and the grantor is treated as the owner of such interest for purposes of applying section 671. Checked 2026-10-10.

Qualifying surviving spouse status requires, among other tests, that the survivor could have filed jointly for the year of death, did not remarry, has a dependent child or stepchild (not a foster child) who lived in the home all year, and paid more than half the cost of keeping up the home.

  • IRS Publication 501 (2025), Qualifying Surviving Spouse, Eligibility rulesYou were entitled to file a joint return with your spouse for the year your spouse died. Checked 2026-10-10.
  • 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 Checked 2026-10-10.
  • IRS Publication 501 (2025), Qualifying Surviving Spouse, Eligibility rulesThis child lived in your home all year, except for temporary absences. Checked 2026-10-10.
  • IRS Publication 501 (2025), Qualifying Surviving Spouse, Eligibility rulesYou paid more than half the cost of keeping up a home for the year. Checked 2026-10-10.

Rev. Proc. 2025-32 sets separate 2026 rate tables for heads of households and for married individuals filing separate returns, apart from the joint and single tables.

  • Rev. Proc. 2025-32, § 3.01 Table 2TABLE 2 - Section 1(j)(2)(B) – Heads of Households Checked 2026-10-10.
  • Rev. Proc. 2025-32, § 3.01 Table 4TABLE 4 - Section 1(j)(2)(D) – Married Individuals Filing Separate Returns Checked 2026-10-10.

Qualified conservation contributions over their AGI limit carry over for 15 succeeding years, not 5.

  • 26 U.S.C. § 170(b)(1)(E)(ii), § 170(b)(1)(E)(ii)such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 15 succeeding years in order of time. Checked 2026-10-10.

A charitable contribution is deductible for the taxable year in which it is paid, so money put into a donor-advised fund counts for the year it goes in.

  • 26 U.S.C. § 170(a)(1), § 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 2026-10-10.

The earliest-lot (first in, first out) default for unidentified shares does not cover shares where the average basis method is allowed, such as mutual fund (regulated investment company) shares and post-2010 dividend reinvestment plan shares left with a custodian.

  • 26 CFR § 1.1012-1(c)(1)(i), § 1.1012-1(c)(1)(i)Except as provided in paragraph (e)(2) of this section (dealing with stock for which the average basis method is permitted) Checked 2026-10-10.
  • 26 CFR § 1.1012-1(e)(1), § 1.1012-1(e)(1)a taxpayer may use the average basis method described in paragraph (e)(7) of this section to determine the cost or other basis of identical shares of stock if— ( i ) The taxpayer leaves shares of stock in a regulated investment company Checked 2026-10-10.

Only one 60-day IRA-to-IRA rollover is allowed in any 1-year period across all of a person's IRAs; required minimum distributions can't be rolled over; and a 60-day rollover isn't available for an inherited IRA (a spouse who treats the IRA as their own is not covered by the inherited-IRA rule).

  • IRS Publication 590-A, Application of one-rollover-per-year limitationYou can make only one rollover from an IRA to another (or the same) IRA in any 1-year period regardless of the number of IRAs you own. Checked 2026-10-10.
  • 26 U.S.C. § 408(d)(3)(C), § 408(d)(3)(C)(i)In the case of an inherited individual retirement account or individual retirement annuity— (I) this paragraph shall not apply to any amount received by an individual from such an account or annuity Checked 2026-10-10.
  • IRS Publication 590-A, 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.

QCD recipients are § 170(b)(1)(A) organizations (other than supporting organizations and donor-advised funds). That list includes the private foundations described in § 170(b)(1)(F): private operating foundations, foundations that pass all contributions through within the time allowed, and pooled common-fund foundations. Other private (non-operating) foundations are not on the list.

  • 26 U.S.C. § 170(b)(1)(A)(vii), § 170(b)(1)(A)(vii)(vii) a private foundation described in subparagraph (F), Checked 2026-10-10.
  • 26 U.S.C. § 170(b)(1)(F), § 170(b)(1)(F)(i)The private foundations referred to in subparagraph (A)(vii) and subsection (e)(1)(B) are— (i) a private operating foundation (as defined in section 4942(j)(3) ), Checked 2026-10-10.
  • 26 U.S.C. § 170(b)(1)(F), § 170(b)(1)(F)(ii)any other private foundation (as defined in section 509(a)) which, not later than the 15th day of the third month after the close of the foundation’s taxable year in which contributions are received, makes qualifying distributions Checked 2026-10-10.
  • 26 U.S.C. § 170(b)(1)(F), § 170(b)(1)(F)(iii)(iii) a private foundation all of the contributions to which are pooled in a common fund Checked 2026-10-10.
  • 26 U.S.C. § 408(d)(8)(B)(i), § 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 2026-10-10.

A donor need not reduce a contribution for a benefit of only token value when the charity correctly determines the value isn't substantial and tells the donor the payment is fully deductible. So such a token item does not stop a gift from being fully deductible.

  • IRS Publication 526 (2025), Contributions From Which You Benefit, Token itemsYou don’t have to reduce your contribution by the value of any benefit you receive if both of the following are true. You receive only a small item or other benefit of token value. The qualified organization correctly determines that the value of the item or benefit you received isn’t substantial and informs you that you can deduct your payment in full. Checked 2026-10-10.

The § 408(d)(8)(G) inflation adjustment uses the § 1(f)(3) cost-of-living adjustment for the calendar year in which the taxable year begins, substituting calendar year 2022 for calendar year 2016.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(G)(i)(II)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2022” for “calendar year 2016” in subparagraph (A)(ii) thereof. Checked 2026-10-10.

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.

The QCD exclusion is capped per taxable year: only the QCDs made during a taxable year, up to the limit, are excluded for that taxable year. § 408(d)(8) contains no provision carrying unused limit to another year.

  • 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 2026-10-10.

Before P.L. 119-21, the § 170(p) non-itemizer charitable deduction ($300, or $600 joint) applied only to taxable years beginning in 2021; P.L. 119-21 struck 'beginning in 2021', raised the amounts to $1,000/$2,000, and made the change effective for taxable years beginning after December 31, 2025. So there was no § 170(p) deduction for 2022 through 2025.

  • 26 U.S.C. § 170 (LII), Amendment note, 2025, Subsec. (p), P.L. 119-21 § 70424(a)struck out “beginning in 2021” after “In the case of any taxable year” and substituted “$1,000 ($2,000” for “$300 ($600”. Checked 2026-10-10.
  • 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 2026-10-10.

For the QCD test that the entire distribution be deductible under § 170, the § 170(b) percentage-of-AGI limits are disregarded, so a large QCD does not fail because a deduction of that size would exceed those limits.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(C)only if a deduction for the entire distribution would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph). Checked 2026-10-10.

For the Form 1040-X refund window, a return filed before the due date (without regard to extensions) is considered filed on the due date.

  • IRS Topic no. 308, Amended returns, When to fileReturns filed before the due date (without regard to extensions) are considered filed on the due date, and withholding is deemed to be tax paid on the due date for the return. Checked 2026-10-10.

Form 8606 is required when you received traditional IRA distributions and your basis is more than zero, but for that test a QCD is not counted as a distribution. So a QCD alone, fully covered by pre-tax money, does not by itself trigger Form 8606; Pub 590-B requires the form when the distribution includes nondeductible contributions (Amy example).

  • Instructions for Form 8606 (2025), Who Must FileYou received distributions from a traditional IRA in 2025 and your basis in these IRAs is more than zero. For this purpose, a distribution doesn’t include a distribution that is rolled over Checked 2026-10-10.
  • Instructions for Form 8606 (2025), Who Must Filequalified charitable distribution, one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions. Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 2, QCDs, Example (Amy)Because Amy made a distribution of nondeductible contributions from her IRA, she must file Form 8606 with her return. Checked 2026-10-10.

Pub 590-B's QCD example: Amy's only IRA is worth $30,000 ($20,000 deductible contributions and earnings, $10,000 nondeductible basis); she directs a $25,000 distribution to charity. The $20,000 that would otherwise be includible is a QCD. She files Form 8606, reports $25,000 on line 4a, enters -0- on line 4b and checks box 2 on line 4c; the $5,000 basis portion may be deducted on Schedule A if she itemizes, subject to AGI limits.

  • IRS Publication 590-B (2025), Ch. 2, QCDs, Example (Amy)On December 23, 2025, Amy, age 75, directed the trustee of her IRA to make a distribution of $25,000 directly to a qualified section 501(c)(3) organization Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 2, QCDs, Example (Amy)The total value of Amy's IRA is $30,000 and consists of $20,000 of deductible contributions and earnings and $10,000 of nondeductible contributions (basis). Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 2, QCDs, Example (Amy)In this case, Amy has made a QCD of $20,000 (her deductible contributions and earnings). Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 2, QCDs, Example (Amy)Amy enters -0- on line 4b. Checked 2026-10-10.

A plan may provide that the surviving-spouse death benefit is not paid unless the participant and spouse were married throughout the 1-year period ending on the earlier of the annuity starting date or the participant's death.

  • 26 U.S.C. § 401 (LII), § 401(a)(11)(D)merely because the plan provides that benefits will not be payable to the surviving spouse of the participant unless the participant and such spouse had been married throughout the 1-year period ending on the earlier of the participant’s annuity starting date or the date of the participant’s death. Checked 2026-10-10.

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.

If the owner died on or after the required beginning date, a designated beneficiary takes yearly required distributions for years after the year of death, and a designated beneficiary who is not an eligible designated beneficiary must also finish within 10 years.

  • IRS Publication 590-B (2025), Ch. 1, Owner Died on or After Required Beginning DateIf the owner died on or after their required beginning date (defined earlier) and you are a designated beneficiary, base your required minimum distributions for years after the year of the owner’s death on the longer of: Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 1, Owner Died on or After Required Beginning DateDistributions to a designated beneficiary who is not an eligible designated beneficiary must be completed within 10 years of the death of the owner. Checked 2026-10-10.

The full-value (qualified appreciated stock) treatment for gifts of public stock to most private foundations stops to the extent the stock given, counting all prior such gifts of that company's stock by the donor and the donor's family, exceeds 10% of the company's outstanding stock.

  • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(i)exceeds 10 percent (in value) of all of the outstanding stock of such corporation Checked 2026-10-10.
  • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(i)when increased by the aggregate amount of all prior such contributions by the donor of stock in such corporation Checked 2026-10-10.
  • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(ii)an individual shall be treated as making all contributions made by any member of his family (as defined in section 267(c)(4) ) Checked 2026-10-10.

A Roth IRA distribution to a beneficiary after the owner's death is a qualified (tax-free) distribution only if it is made after the 5-taxable-year period beginning with the first year a contribution was made to a Roth IRA for the owner.

  • 26 U.S.C. § 408A (LII), § 408A(d)(2)(B)shall not be treated as a qualified distribution under subparagraph (A) if such payment or distribution is made within the 5-taxable year period beginning with the first taxable year for which the individual made a contribution to a Roth IRA Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 2, What Are Qualified Distributions?It is made after the 5-year period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit. Checked 2026-10-10.

Tax-exempt § 501(c) organizations are still taxed on unrelated business taxable income.

  • 26 U.S.C. § 511 (LII), § 511(a)(1)There is hereby imposed for each taxable year on the unrelated business taxable income (as defined in section 512) of every organization described in paragraph (2) a tax computed as provided in section 11. Checked 2026-10-10.

A CRAT's (and, by § 664(d)(2)(A), a CRUT's) payments to individuals may be paid only to an individual living when the trust is created; this condition applies to individual recipients whether payments run for a term of years or for life.

  • 26 U.S.C. § 664 (LII), § 664(d)(1)(A)in the case of individuals, only to an individual who is living at the time of the creation of the trust) Checked 2026-10-10.

Treas. Reg. § 1.1011-2(c) Example 8 (the $100,000 / $59,755 / $40,245 gift annuity) is set on January 1, 1970, and points to later guidance for transfers valued after November 23, 1984; it illustrates the method, not current values.

  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(c) Example 8(a)On January 1, 1970, A, a male of age 65, transfers capital assets consisting of securities held for more than 6 months to a church Checked 2026-10-10.
  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(c) Example 8(b)See Rev. Rul. 84-162, 1984-2 C.B. 200, for transfers for which the valuation date falls after November 23, 1984. Checked 2026-10-10.

A charitable remainder unitrust's governing instrument must either prohibit additional contributions after the initial one or contain the regulation's rules for valuing them and computing the payout in the year of the addition; additions are allowed only if the instrument so provides.

  • 26 CFR § 1.664-3 (LII), § 1.664-3(b)unless its governing instrument either prohibits additional contributions to the trust after the initial contribution or provides that for the taxable year of the trust in which the additional contribution is made Checked 2026-10-10.

A remainder interest in trust is a gift 'to' the charity, unless the trust instrument says that, when the prior interest ends, the interest is to be held in trust for the charity's benefit; then it is 'for the use of' the charity. Gifts 'for the use of' a public charity fall outside § 170(b)(1)(A), so cash is limited to 30% of the contribution base (§ 170(b)(1)(B)) and capital gain property to 20% (§ 170(b)(1)(D)).

  • 26 CFR § 1.170A-8 (LII), § 1.170A-8(a)(2)shall be considered as made “to” the charitable organization except that, if such interest is transferred in trust and, pursuant to the terms of the trust instrument, the interest contributed is, upon termination of the predecessor estate , to be held in trust for the benefit of such organization , the contribution shall be considered as made “for the use of” such organization . Checked 2026-10-10.
  • 26 U.S.C. § 170 (LII), § 170(b)(1)(B)Any charitable contribution other than a charitable contribution to which subparagraph (A) or (G) applies shall be allowed to the extent that the aggregate of such contributions does not exceed the lesser of— (i) 30 percent of the taxpayer’s contribution base for the taxable year Checked 2026-10-10.
  • 26 U.S.C. § 170 (LII), § 170(b)(1)(D)(i)In the case of charitable contributions (other than charitable contributions to which subparagraph (A) applies) of capital gain property, the total amount of such contributions of such property taken into account under subsection (a) for any taxable year shall not exceed the le Checked 2026-10-10.

Form 1099-R is filed for each person who receives a designated distribution from IRAs, annuities, pensions, insurance contracts and similar arrangements, including charitable gift annuities.

A QCD used to fund a charitable gift annuity is not treated as an investment in the contract under § 72(c), so no part of each payment is a tax-free return of investment. Because a QCD is excluded from income, it also gives no charitable deduction (§ 408(d)(8)(E)).

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(v)(II)Qualified charitable distributions made to fund a charitable gift annuity shall not be treated as an investment Checked 2026-10-10.
  • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)would be includible in gross income without regard to subparagraph (A). Checked 2026-10-10.

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.

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.

Medical expenses are deductible as an itemized deduction only to the extent they exceed 7.5% of adjusted gross income.

  • 26 U.S.C. § 213 (LII), § 213(a)to the extent that such expenses exceed 7.5 percent of adjusted gross income Checked 2026-10-10.

The itemized deduction for state and local taxes is capped each year at the applicable limitation amount ($40,400 for 2026; half for married filing separately).

  • 26 U.S.C. § 164 (LII), § 164(b)(6)shall not exceed the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return) Checked 2026-10-10.
  • 26 U.S.C. § 164 (LII), § 164(b)(7)(A)(ii)in the case of any taxable year beginning in calendar year 2026, $40,400 Checked 2026-10-10.

The IRS may waive the 60-day rollover requirement in certain situations.

The additional standard deduction is allowed separately for being 65 or older and for being blind, for the taxpayer and (if applicable) the spouse, so a person who is both gets two additional amounts. The $1,650 (2026) amount applies to married people and surviving spouses; $2,050 to those unmarried and not a surviving spouse.

  • 26 U.S.C. § 63 (LII), § 63(f)(1)(A)for himself if he has attained age 65 before the close of his taxable year Checked 2026-10-10.
  • 26 U.S.C. § 63 (LII), § 63(f)(2)(A)for himself if he is blind at the close of the taxable year Checked 2026-10-10.

Basis (after-tax money) in a traditional IRA inherited from someone stays with that IRA. Unless you are the spouse and treat it as your own, it is not combined with basis in your own IRAs or in IRAs inherited from other people; separate Forms 8606 are completed.

  • IRS Publication 590-B (2025), Ch. 1, What if You Inherit an IRA?, IRA with basisthat basis remains with the IRA. Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 1, What if You Inherit an IRA?, IRA with basisyou can't combine this basis with any basis you have in your own traditional IRA(s) Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 1, What if You Inherit an IRA?, IRA with basisor any basis in traditional IRA(s) you inherited from other decedents Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 1, What if You Inherit an IRA?, IRA with basiscomplete separate Forms 8606 Checked 2026-10-10.

The separate IRMAA table for married people filing separately applies only to those who did not live apart from their spouse at all times during the tax year; a separate filer who lived apart all year uses the single thresholds.

  • 42 U.S.C. § 1395r (LII), § 1395r(i)(3)(C)(iii)does not live apart from such individual's spouse at all times during the taxable year Checked 2026-10-10.

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.

A 401(k) plan may not distribute amounts attributable to an employee's elective deferrals earlier than certain events, including severance from employment, death, disability, attainment of age 59½ (profit-sharing or stock bonus plan), or hardship. So money in a 401(k) can't always be moved to an IRA while the employee still works there.

  • 26 U.S.C. § 401 (LII), § 401(k)(2)(B)(i)may not be distributable to participants or other beneficiaries earlier than— (I) severance from employment, death, or disability, (II) an event described in paragraph (10), (III) in the case of a profit-sharing or stock bonus plan, the attainment of age 59½, (IV) subject to the provisions of paragraph (14), upon hardship of the employee Checked 2026-10-10.

On the 2025 Form 1040, Exception 2 for lines 4a/4b: if you received a distribution from a non-Roth IRA and made nondeductible contributions to any traditional IRA for 2025 or an earlier year, enter the total on line 4a and use Form 8606 to figure line 4b. Rollovers are Exception 1.

  • Instructions for Form 1040 (2025), Lines 4a and 4b, Exception 2Exception 2. If any of the following apply, enter the total distribution on line 4a and see Form 8606 and its instructions to figure the amount to enter on line 4b. You received a distribution from an IRA (other than a Roth IRA) and you made nondeductible contributions to any of your traditional IRAs for 2025 or an earlier year. Checked 2026-10-10.

IRAs a person holds as beneficiary of one decedent are aggregated with each other for RMD purposes, but not with IRAs the person holds as owner or as beneficiary of a different decedent.

  • 26 CFR § 1.408-8 (LII), § 1.408-8(e)(2)(ii)IRAs that a person holds as a beneficiary of a decedent are aggregated for purposes of paragraph (e)(1) of this section, but those amounts are not aggregated with IRAs that the person holds as the owner or as the beneficiary of a different decedent. Checked 2026-10-10.

If the IRA beneficiary is not an individual (e.g., the owner's estate), different rules apply: the 5-year rule if the owner died before the required beginning date. Some trusts can be treated as designated beneficiaries.

  • IRS Publication 590-B (2025), Ch. 1, IRA BeneficiariesIf the owner’s beneficiary isn’t an individual (for example, if the beneficiary is the owner’s estate), the 5-year rule , discussed later, applies. Checked 2026-10-10.
  • IRS Publication 590-B (2025), Ch. 1, IRA Beneficiaries(But see Trust as beneficiary , later, for a discussion about treating trust beneficiaries as designated beneficiaries.) Checked 2026-10-10.

If an IRA owner died on or after the required beginning date, the beneficiaries are responsible for distributing the owner's required minimum distribution for the year of death (to the extent not already taken).

  • IRS Publication 590-B (2025), Ch. 1, Distributions in the year of the owner's deathIf the owner died on or after the required beginning date, the IRA beneficiaries are responsible for figuring and distributing the owner's required minimum distribution in the year of death. Checked 2026-10-10.

For contributions of property for which a deduction of more than $5,000 is claimed, the donor generally must obtain a qualified appraisal; the requirement does not apply to readily valued property such as cash and publicly traded securities. Other exceptions exist in the regulations (not reviewed here).

  • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal Checked 2026-10-10.
  • 26 U.S.C. § 170 (LII), § 170(f)(11)(A)(ii)(I)publicly traded securities (as defined in section 6050L(a)(2)(B)), and any qualified vehicle Checked 2026-10-10.

For the one-time split-interest QCD, § 408(d)(8)(F)(iii) replaces the entire-distribution deductibility test: for a CRAT or CRUT, a deduction for the entire value of the remainder interest must be allowable under § 170; for a charitable gift annuity, a deduction equal to the distribution reduced by the value of the annuity must be allowable (determined without regard to § 170(b)).

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(iii)(I)a deduction for the entire value of the remainder interest in the distribution Checked 2026-10-10.
  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(iii)(II)reduced by the value of the annuity described in section 501(m)(5)(B) would be allowable under section 170 Checked 2026-10-10.

A charity that issues a charitable gift annuity for cash or capital gain property reports the annuity payments on Form 1099-R, with the total distributed in the year in box 1.

  • Instructions for Forms 1099-R and 5498, Specific Instructions for Form 1099-R, Charitable gift annuitiesIf cash or capital gain property is donated in exchange for a charitable gift annuity, report distributions from the annuity on Form 1099-R. Checked 2026-10-10.

IRMAA is charged to each Medicare beneficiary whose MAGI is above the threshold for their tax filing status.

  • SSA POMS HI 01101.001, A.1above the threshold for their tax filing status pay an IRMAA in addition to the monthly premium Checked 2026-10-10.

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.

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.

Form 8283 must be filed if the deduction for each noncash contribution is more than $500, and also if a group of similar items of property is claimed for a total deduction of over $500. Section A covers deductions of $5,000 or less per item or group of similar items; Section B covers more than $5,000 per item or group of similar items.

  • Instructions for Form 8283 (IRS), Who Must FileYou must file one or more Forms 8283 if the amount of your deduction for each noncash contribution is more than $500. You must also file Form 8283 if you have a group of similar items for which a total deduction of over $500 is claimed. Checked 2026-10-11.
  • Instructions for Form 8283 (IRS), Which Sections To CompleteUse Section A to report donations of property for which you claimed a deduction of $5,000 or less per item or group of similar items. Checked 2026-10-11.
  • Instructions for Form 8283 (IRS), Which Sections To CompleteUse Section B to report donations of property for which you claimed a deduction of more than $5,000 per item or group of similar items. Checked 2026-10-11.

A share in an open-end investment company (a mutual fund) is valued at the fund's public redemption price for the valuation date, not at a mean between high and low quoted selling prices. If no redemption price is quoted for that date, the last price quoted for the first preceding day with a quotation applies.

  • 26 C.F.R. § 20.2031-8 (LII), § 20.2031-8(b)(1)The fair market value of a share in an open-end investment company (commonly known as a "mutual fund") is the public redemption price of a share. Checked 2026-10-11.
  • 26 C.F.R. § 20.2031-8 (LII), § 20.2031-8(b)(1)If there is no public redemption price quoted by the company for the applicable valuation date (e.g., the valuation date is a Saturday, Sunday, or holiday), the fair market value of the mutual fund share is the last public redemption price quoted by the company for the first day preceding the applicable valuation date for which there is a quotation. Checked 2026-10-11.

If there were no sales of the security on the valuation date but there were sales within a reasonable period before and after it, fair market value is a weighted average of the means between the highest and lowest sales prices on the nearest trading date before and the nearest trading 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 2026-10-11.
  • IRS Publication 561 (Rev. 12/2025), Stocks and Bonds, No sales on valuation dateIf there were no sales on the valuation date but there were sales within a reasonable period before and after the valuation date, you determine FMV by taking the average price between the highest and lowest sales prices on the nearest date before and on the nearest date after the valuation date. Checked 2026-10-11.

A qualified appraisal is not required for a contribution of nonpublicly traded stock when the deduction claimed is more than $5,000 but not more than $10,000; above $10,000 the general qualified-appraisal requirement applies. The gift is still reported in Section B of Form 8283, which covers property for which a deduction of more than $5,000 per item or group of similar items is claimed.

  • 26 C.F.R. § 1.170A-13 (LII), § 1.170A-13(c)(2)(ii)(B)(1)The contribution of nonpublicly traded stock, if the amount claimed or reported as a deduction for the charitable contribution of such stock is greater than $5,000 but does not exceed $10,000; Checked 2026-10-11.
  • Instructions for Form 8283 (IRS), Which Sections To CompleteUse Section B to report donations of property for which you claimed a deduction of more than $5,000 per item or group of similar items. Checked 2026-10-11.

For the charitable substantiation rules, publicly traded securities are securities for which market quotations are readily available on an established securities market as of the date of contribution. Securities are not treated as publicly traded securities if they are subject to any restrictions that materially affect their value to the donor or prevent them from being freely traded.

  • 26 C.F.R. § 1.170A-13 (LII), § 1.170A-13(c)(7)(xi)(A)Securities for which (as of the date of contribution) market quotations are readily available on an established securities market. Checked 2026-10-11.
  • 26 C.F.R. § 1.170A-13 (LII), § 1.170A-13(c)(7)(xi)(C)(1)The securities are subject to any restrictions that materially affect the value of the securities to the donor or prevent the securities from being freely traded, Checked 2026-10-11.

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

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

The RMD applicable age is two values set by birth year, not one. It is 73 for an individual who attains age 72 after December 31, 2022 and age 73 before January 1, 2033, and 75 for an individual who attains age 74 after December 31, 2032.

  • 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. Checked 2026-10-11.
  • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)(II)In the case of an individual who attains age 74 after December 31, 2032, the applicable age is 75. Checked 2026-10-11.

A person is a beneficiary taken into account for section 401(a)(9) if, as of the date of the employee's death, that person is a beneficiary designated under the plan and none of the disregard events has occurred by September 30 of the calendar year following the year of death; those events are predeceasing the employee, being treated as predeceasing under a simultaneous death provision or a qualified disclaimer, or receiving the entire benefit.

  • 26 CFR § 1.401(a)(9)-4 (GPO, CFR 2025 title 26 vol 6), § 1.401(a)(9)-4(c)(1), Time period for determining the beneficiarya person is a beneficiary taken into account for purposes of section 401(a)(9) if, as of the date of the employee's death, that person is a beneficiary designated under the plan and none of the events described in paragraph (c)(2) of this section has occurred with respect to that person by September 30 of the calendar year following the calendar year of the employee's death Checked 2026-10-11.
  • 26 CFR § 1.401(a)(9)-4 (GPO, CFR 2025 title 26 vol 6), § 1.401(a)(9)-4(c)(2)(i)The beneficiary predeceases the employee; Checked 2026-10-11.

A beneficiary designated under the plan is a person entitled to a portion of the employee's benefit, contingent on the employee's death or another specified event, and whether that person is taken into account for section 401(a)(9) is determined under the September 30 rules.

A charitable remainder unitrust may pay its noncharitable beneficiaries for a term of years not exceeding 20 years, or for the life or lives of individuals who are living at the time the trust is created.

  • 26 U.S.C. § 664 (LII), § 664(d)(2)(A)to one or more persons (at least one of which is not an organization described in section 170(c) and, in the case of individuals, only to an individual who is living at the time of the creation of the trust) for a term of years (not in excess of 20 years) or for the life or lives of such individual or individuals Checked 2026-10-11.

A qualified disclaimer must be an irrevocable and unqualified refusal to accept an interest in property.

  • 26 U.S.C. § 2518 (LII), § 2518(b), opening wordsFor purposes of subsection (a), the term 'qualified disclaimer' means an irrevocable and unqualified refusal by a person to accept an interest in property but only if— Checked 2026-10-11.
  • 26 U.S.C. § 2518 (LII), § 2518(b)(1)such refusal is in writing, Checked 2026-10-11.

A qualified disclaimer must be in writing and received by the transferor, the transferor's legal representative, or the holder of legal title no later than 9 months after the later of the day the transfer creating the interest is made or the day the person disclaiming turns 21.

  • 26 U.S.C. § 2518 (LII), § 2518(b)(2)such writing is received by the transferor of the interest, his legal representative, or the holder of the legal title to the property to which the interest relates not later than the date which is 9 months after the later of—(A) the day on which the transfer creating the interest in such person is made, or (B) the day on which such person attains age 21 Checked 2026-10-11.

A qualified disclaimer also requires that the person has not accepted the interest or any of its benefits, and that as a result of the refusal the interest passes without any direction on the part of the person disclaiming.

  • 26 U.S.C. § 2518 (LII), § 2518(b)(3)such person has not accepted the interest or any of its benefits Checked 2026-10-11.
  • 26 U.S.C. § 2518 (LII), § 2518(b)(4)as a result of such refusal, the interest passes without any direction on the part of the person making the disclaimer and passes either—(A) to the spouse of the decedent, or (B) to a person other than the person making the disclaimer Checked 2026-10-11.

An estate gets an income tax deduction for gross income paid to charity only if the payment is made pursuant to the terms of the governing instrument, such as the will.

  • 26 U.S.C. § 642 (LII), § 642(c)(1)there shall be allowed as a deduction in computing its taxable income (in lieu of the deduction allowed by section 170(a), relating to deduction for charitable, etc., contributions and gifts) any amount of the gross income, without limitation, which pursuant to the terms of the governing instrument is, during the taxable year, paid for a purpose specified in section 170(c) Checked 2026-10-11.

If a traditional IRA owner had basis from nondeductible contributions, that basis remains with the IRA after death, and the beneficiary files Form 8606 to figure the taxable and nontaxable parts of distributions.

  • IRS Publication 590-B, Ch. 1, Inherited IRAs — BasisIf you inherit a traditional IRA from a person who had basis in the IRA because of nondeductible contributions, that basis remains with the IRA. Checked 2026-10-11.
  • IRS Publication 590-B, Ch. 1, Inherited IRAs — BasisIf you take distributions from both an inherited IRA and your IRA, and each has basis, you must complete separate Forms 8606 to determine the taxable and nontaxable portions of those distributions. Checked 2026-10-11.

If separate accounts meeting the separate accounting requirements are not established until after the end of the calendar year following the year of the employee's death, then for distribution calendar years after those requirements are satisfied the aggregate required distribution is determined without regard to the separate account rule and allocated among the beneficiaries by share.

  • 26 CFR § 1.401(a)(9)-8 (LII), § 1.401(a)(9)-8(a)(1)(ii)If the separate accounts that satisfy the separate accounting requirements of paragraph (a)(2) of this section are not established until after the end of the calendar year following the calendar year of the employee's death, then for distribution calendar years after those requirements are satisfied—(A) The aggregate required distribution for a distribution calendar year is determined without regard to the separate account rule in paragraph (a)(1)(i) of this section Checked 2026-10-11.

For the required minimum distribution rules, a minor child of the employee or IRA owner reaches the age of majority on the individual's 21st birthday, which is when the 10-year payout period begins.

A private foundation exempt from tax under section 501(a) owes a 1.39 percent excise tax on its net investment income for the taxable year.

  • 26 U.S.C. § 4940 (LII), § 4940(a)There is hereby imposed on each private foundation which is exempt from taxation under section 501(a) for the taxable year, with respect to the carrying on of its activities, a tax equal to 1.39 percent of the net investment income of such foundation for the taxable year. Checked 2026-10-11.

On a United States savings bond, only an individual may be designated as coowner or beneficiary, so a charity cannot be named on the bond's own registration.

A savings bond registered with a surviving coowner or beneficiary passes to that person as sole and absolute owner at the owner's death; a bond registered in single ownership form becomes property of the decedent's estate.

A spouse's written consent to a non-spouse beneficiary must designate a beneficiary that may not be changed without further spousal consent, unless the consent expressly permits later designations without it, and the consent must acknowledge the effect of the election.

  • 26 U.S.C. § 417 (LII), § 417(a)(2)(A)(ii)–(iii)such election designates a beneficiary (or a form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse), and (iii) the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public Checked 2026-10-11.

For federal income tax purposes a person is treated as reaching age 65 on the day before that person's 65th birthday, so someone born on January 1 is treated as having attained age 65 before the close of the prior taxable year.

"Surviving spouse" in § 63(f) and Rev. Proc. 2025-32 § 3.14(3) is the filing status defined at 26 U.S.C. § 2(a)(1): a taxpayer whose spouse died during either of the two taxable years immediately preceding the taxable year AND who maintains as a home a household that is the principal place of abode of a dependent son, stepson, daughter, or stepdaughter. A widowed taxpayer outside that window files as single, is therefore "unmarried and not a surviving spouse," and takes the larger additional standard deduction amount.

  • 26 U.S.C. § 2 (LII), § 2(a)(1)(A)whose spouse died during either of his two taxable years immediately preceding the taxable year, and Checked 2026-10-11.
  • 26 U.S.C. § 2 (LII), § 2(a)(1)(B)who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent Checked 2026-10-11.
  • 26 U.S.C. § 2 (LII), § 2(a)(1), opening clauseFor purposes of section 1, the term "surviving spouse" means a taxpayer— Checked 2026-10-11.

The extra deduction for those 65 and older requires the qualified individual's social security number on the return, and a married taxpayer may claim it only if the taxpayer and spouse file a joint return for the year.

  • 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 2026-10-11.
  • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(v)If the taxpayer is a married individual (within the meaning of section 7703), this subparagraph shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year. Checked 2026-10-11.

For the Social Security benefit taxation test, modified adjusted gross income is adjusted gross income determined without regard to section 86 itself (so without the taxable part of the benefits), increased by tax-exempt interest; one-half of benefits is then added to that figure.

  • 26 U.S.C. § 86 (LII), § 86(b)(2)(A)determined without regard to this section and sections 85(c), 135, 137, 221, 911, 931, and 933 Checked 2026-10-11.
  • 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 2026-10-11.

A carryover of 30-percent capital gain property is governed by its own branch of the regulation. In a succeeding year in which the taxpayer takes the standard deduction, the amount treated as paid but not allowable as a deduction is the LEAST of four amounts determined under § 1.170A-10(c)(2)(i) to (iv), the first of which is the amount by which 30 percent (not 50 percent) of the contribution base for that year exceeds the sum of the 30-percent capital gain property contributions actually made that year to section 170(b)(1)(A) organizations and the 30-percent capital gain property carryovers from earlier years treated as paid in that year. Subdivision (ii) is a parallel 50-percent measure. Exactly two of the four, (iii) and (iv), depend on how many years have passed since the contribution year: (iii) applies to the first succeeding year and (iv) to the second through fifth succeeding years.

  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(c)(2)If a taxpayer, in any one of the four taxable years succeeding a contribution year, elects under section 144 to take the standard deduction instead of itemizing the deductions allowable in computing taxable income, there shall be treated as paid (but not allowable as a deduction) in the standard deduction year the least of the amounts determined under subdivisions (i) to (iv), inclusive, of this subparagraph. Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(c)(2)(i)The amount by which 30 percent of the taxpayer's contribution base for such succeeding taxable year exceeds the sum of: Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(c)(2)(i)(a)The charitable contributions of 30-percent capital gain property actually made (computed without regard to the provisions of section 170 (b)(1)(D)(ii) and (d)(1) and this section) by the taxpayer in such succeeding taxable year to section 170(b)(1)(A) organizations, and Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(c)(2)(i)(b)The charitable contributions of 30-percent capital gain property made to section 170(b)(1)(A) organizations in taxable years preceding the contribution year, which, pursuant to the provisions of section 170 (b)(1)(D)(ii) and (d)(1) and this section, are treated as having been paid to a section 170(b)(1)(A) organization in such succeeding year. Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(c)(2)(ii)The amount by which 50 percent of the taxpayer's contribution base for such Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(c)(2)(iii)In the case of the first taxable year succeeding the contribution year, the amount of the Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(c)(2)(iv)In the case of the second, third, fourth, and fifth succeeding taxable years succeeding the Checked 2026-10-11.

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.

In a carryover year in which the taxpayer takes the standard deduction, the amount treated as paid but not allowable as a deduction is the lesser of the amounts determined under subdivisions (i) to (iii), one of which is the amount by which 50 percent of the contribution base for that year exceeds the SUM of the charitable contributions actually made that year and the carryovers from earlier contribution years treated as paid in that year, and another of which is the excess contribution carried from the contribution year. So the entire remaining carryover can be consumed in one standard-deduction year.

  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(2)there shall be treated as paid (but not allowable as a deduction) in such standard deduction year the lesser of the amounts determined under subdivisions (i) to (iii), inclusive, of this subparagraph Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(2)(i)The amount by which 50 percent of the taxpayer's contribution base for such succeeding taxable year exceeds the sum of: Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(2)(i)(a)The charitable contributions actually made (computed without regard to the provisions of section 170 (b)(1)(D)(ii) and (d)(1) and this section) by the taxpayer in such succeeding taxable year to section 170(b)(1)(A) organizations, and Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(2)(i)(b)The charitable contributions, other than contributions of 30-percent capital gain property, made to section 170(b)(1)(A) organizations in taxable years preceding the contribution year which, pursuant to the provisions of section 170(d)(1) and this section, are treated as having been paid to a section 170(b)(1)(A) organization in such succeeding year. Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(2)(iii)In the case of the second, third, fourth, and fifth taxable years succeeding the contribution year, the portion of the excess charitable contribution in the contribution year, computed under subparagraph (1) of this paragraph and paragraph (d)(1) of this section, which has not been treated as paid to a section 170(b)(1)(A) organization in a year intervening between the contribution year and such succeeding taxable year. Checked 2026-10-11.
  • 26 CFR § 1.170A-10 (LII), § 1.170A-10(b)(2)(ii)In the case of the first taxable year succeeding the contribution year, the amount of the excess charitable contribution in the contribution year, computed under subparagraph (1) of this paragraph and paragraph (d)(1) of this section. Checked 2026-10-11.

No deduction is allowed for a contribution of cash, a check, or other monetary gift unless the donor keeps a bank record or a written communication from the charity showing the charity's name, the date of the contribution, and the amount. This applies to cash gifts of any size, including those under the $250 contemporaneous written acknowledgment threshold.

  • 26 U.S.C. § 170 (LII), § 170(f)(17)No deduction shall be allowed under subsection (a) for any contribution of a cash, check, or other monetary gift unless the donor maintains as a record of such contribution a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution. Checked 2026-10-11.

The 10 percent limit on qualified appreciated stock is cumulative, not per gift. The stock contributed is increased by the aggregate of all the donor's prior contributions of stock in that corporation, 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)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 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.

The § 68 reduction of itemized deductions is measured against taxable income computed without regard to § 68 and increased by the itemized deductions themselves, compared with the dollar amount at which the 37 percent rate bracket begins. So the test uses income before itemized deductions come off, not taxable income after them.

  • 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 2026-10-11.
  • 26 U.S.C. § 68 (LII), § 68(a)the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by Checked 2026-10-11.

An issuing charity's obligation to pay an annuity is excluded from acquisition indebtedness only if it meets every condition of section 514(c)(5): it is the sole consideration issued in exchange for the property and the annuity's value at the exchange is less than 90 percent of the value of the property received; it is payable over the life of one individual in being when issued, or the lives of two such individuals; and the contract neither guarantees a minimum nor specifies a maximum amount of payments, and does not adjust payments by reference to income from the transferred or other property. This is a condition on the charity's own unrelated-business-income tax treatment, not a federal cap on what a donor may give or receive.

  • 26 U.S.C. § 514 (LII), § 514(c)(5)For purposes of this section, the term "acquisition indebtedness" does not include an obligation to pay an annuity which— Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(5)(A)is the sole consideration (other than a mortgage to which paragraph (2)(B) applies) issued in exchange for property if, at the time of the exchange, the value of the annuity is less than 90 percent of the value of the property received in the exchange Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(5)(B)is payable over the life of one individual in being at the time the annuity is issued, or over the lives of two individuals in being at such time, and Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(5)(C)is payable under a contract which— (i) does not guarantee a minimum amount of payments or specify a maximum amount of payments, and (ii) does not provide for any adjustment of the amount of the annuity payments by reference to the income received from the transferred property or any other property. Checked 2026-10-11.

For federal tax purposes, the value of an annuity (and of an interest for life or a term of years, or a remainder interest) is determined under tables prescribed by the Secretary, using an interest rate rounded to the nearest 2/10ths of 1 percent and equal to 120 percent of the federal midterm rate under section 1274(d)(1) for the month in which the valuation date falls. That rate is commonly called the section 7520 rate. It is the rate and table set that fixes the value of the annuity a charitable gift annuity promises, and so the size of the gift portion.

Federal law does not publish gift annuity payout rates, but it does limit the annuity's size relative to the gift: a charity's annuity obligation escapes treatment as acquisition indebtedness only if, among other conditions, the value of the annuity at the time of the exchange is less than 90 percent of the value of the property received.

  • 26 U.S.C. § 514 (LII), § 514(c)(5)(A)is the sole consideration (other than a mortgage to which paragraph (2)(B) applies) issued in exchange for property if, at the time of the exchange, the value of the annuity is less than 90 percent of the value of the property received in the exchange Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(5)payable over the life of one individual in being at the time the annuity is issued, or over the lives of two individuals in being at such time Checked 2026-10-11.

In a bargain sale to charity, the donor's adjusted basis is apportioned between the sale portion and the gift portion only if a charitable contributions deduction is allowable under section 170 by reason of the sale or exchange; the apportioned basis is the share of total basis that the amount realized bears to the property's fair market value. If no deduction is allowable, no apportionment applies and the full basis offsets the amount realized, so less gain is recognized.

  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(a)(1)If for the taxable year a charitable contributions deduction is allowable under section 170 by reason of a sale or exchange of property, the taxpayer's adjusted basis of such property for purposes of determining gain from such sale or exchange must be computed as provided in section 1011(b) and paragraph (b) Checked 2026-10-11.
  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(b)the adjusted basis of the property which is sold or exchanged shall be that portion of the adjusted basis of the entire property which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the entire property Checked 2026-10-11.
  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(a)(2)If in the taxable year there is a sale or exchange of property which gives rise to a charitable contribution which is carried over under section 170(b)(1)(D)(ii) or section 170(d) to a subsequent taxable year or is postponed under section 170(a)(3) to a subsequent taxable year, section 1011(b) and paragraph (b) of this section must be applied for purposes of apportioning the adjusted basis of the property for the year of the sale or exchange, whether or not such contribution is allowable as a deduction under section 170 in such subsequent year. Checked 2026-10-11.

The ratable-gain reporting rule for a bargain-sale gift annuity applies only if the annuity is nonassignable (or assignable only to the issuing charity) and the transferor is the only annuitant, or the transferor and a designated survivor annuitant or annuitants are the only annuitants. The gain is then reported ratably over the period of years measured by the expected return multiple under the contract, which for a two-life annuity reflects both lives.

  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(a)(4)(ii)If in such case the annuity received in exchange for the property is nonassignable, or is assignable but only to the charitable organization to which the property is sold or exchanged, and if the transferor is the only annuitant or the transferor and a designated survivor annuitant or annuitants are the only annuitants, any gain on such exchange is to be reported as provided in example (8) Checked 2026-10-11.
  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(c) Example 8(c)Such gain is to be reported by A ratably over the period of years measured by the expected return multiple under the contract Checked 2026-10-11.

When a taxpayer sells property to raise cash, only the gain is taxed: gain is the amount realized over the adjusted basis, and basis is the property's cost. So the part of a sale's proceeds that returns the owner's cost is not income. Applied to the worked comparison on this page, a 5% withdrawal taken from a reinvested brokerage balance is fully taxable only if it comes out as current income such as interest or dividends; if shares are sold to fund it, only the gain portion of those shares is taxed.

Ratable gain reporting on a charitable gift annuity bargain sale requires, in addition to the annuity being nonassignable (or assignable only to the issuing charity), that the transferor be the only annuitant, or that the transferor and a designated survivor annuitant or annuitants be the only annuitants.

  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(a)(4)(ii)the transferor is the only annuitant or the transferor and a designated survivor annuitant or annuitants are the only annuitants Checked 2026-10-11.

The bargain-sale rules of § 1011(b) and § 1.1011-2, including the ratable gain reporting rule for a nonassignable gift annuity, apply only where a charitable contributions deduction is allowable under section 170 by reason of the sale or exchange.

  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(a)(4)(i)Section 1011(b) and this section apply where property is sold or exchanged in return for an obligation to pay an annuity and a charitable contributions deduction is allowable under section 170 by reason of such sale or exchange. Checked 2026-10-11.

A gift to a charitable remainder trust is a contribution of a remainder interest in property under § 170(f)(2)(A), not a contribution 'of cash' under § 170(b)(1)(G). The general percentage limit for a contribution to a § 170(b)(1)(A) organization is 50 percent of the contribution base; the 60 percent limit of § 170(b)(1)(G) is keyed to contributions of cash.

  • 26 U.S.C. § 170 (LII), § 170(f)(2)(A)In the case of property transferred in trust, no deduction shall be allowed under this section for the value of a contribution of a remainder interest unless the trust is a charitable remainder annuity trust or a charitable remainder unitrust (described in section 664), or a pooled income fund (described in section 642(c)(5)) Checked 2026-10-11.
  • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)shall be allowed to the extent that the aggregate of such contributions does not exceed 50 percent of the taxpayer's contribution base for the taxable year Checked 2026-10-11.

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

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

The 10-year rule applies to a designated beneficiary who is not an eligible designated beneficiary. An eligible designated beneficiary is a surviving spouse, a child of the owner who has not reached majority, a disabled individual, a chronically ill individual, or an individual not more than 10 years younger than the owner.

  • 26 U.S.C. § 401 (LII), § 401(a)(9)(E)(ii)The term "eligible designated beneficiary" means, with respect to any employee, any designated beneficiary who is— Checked 2026-10-11.
  • 26 U.S.C. § 401 (LII), § 401(a)(9)(E)(ii)(III)-(V)disabled (within the meaning of section 72(m)(7)), (IV) a chronically ill individual Checked 2026-10-11.
  • 26 U.S.C. § 401 (LII), § 401(a)(9)(E)(ii)(V)an individual not described in any of the preceding subclauses who is not more than 10 years younger than the employee Checked 2026-10-11.

For federal estate tax, where a transfer serves both a charitable and a private purpose, the deduction is allowed only for the charitable beneficial interest insofar as it is presently ascertainable and severable, and the amount of the deduction for a contribution of a partial interest is the fair market value of that partial interest at the appropriate valuation date — not the value of the whole transferred property.

  • 26 CFR § 20.2055-2 (LII), § 20.2055-2(a)If a trust is created or property is transferred for both a charitable and a private purpose, deduction may be taken of the value of the charitable beneficial interest only insofar as that interest is presently ascertainable, and hence severable from the noncharitable interest. Checked 2026-10-11.
  • 26 CFR § 20.2055-2 (LII), § 20.2055-2(f)(1)The amount of the deduction in the case of a contribution of a partial interest in property to which this section applies is the fair market value of the partial interest at the appropriate valuation date Checked 2026-10-11.

Where property is acquired by gift subject to a mortgage that was placed on the property more than 5 years before the gift, and the donor held the property more than 5 years before the gift, the indebtedness secured by that mortgage is not treated as acquisition indebtedness for 10 years following the gift. The exception does not apply if the organization assumes and agrees to pay the indebtedness, or pays anything for the donor's equity.

  • 26 U.S.C. § 514 (LII), § 514(c)(2)(B)(ii)If an organization acquires property by gift subject to a mortgage which was placed on the property more than 5 years before the gift, which property was held by the donor more than 5 years before the gift, the indebtedness secured by such mortgage shall not be treated as acquisition indebtedness during a period of 10 years following the date of such gift. Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(2)(B), flush textThis subparagraph shall not apply if the organization, in order to acquire the equity in the property by bequest, devise, or gift, assumes and agrees to pay the indebtedness secured by the mortgage, or if the organization makes any payment for the equity in the property owned by the decedent or the donor. Checked 2026-10-11.

For a net income unitrust, 'trust income' under § 664(d)(3)(A) means income determined under the terms of the governing instrument and applicable local law (§ 643(b)). Proceeds from selling assets the donor contributed must be allocated to principal, not trust income, at least to the extent of the fair market value of those assets when contributed; proceeds from assets the trust purchased must be allocated to principal at least to the extent of the purchase price. Amounts above those floors may be allocated to income only if the governing instrument so provides and local law does not prohibit it.

  • 26 U.S.C. § 643 (LII), § 643(b)means the amount of income of the estate or trust for the taxable year determined under the terms of the governing instrument and applicable local law Checked 2026-10-11.
  • 26 CFR § 1.664-3 (LII), § 1.664-3(a)(1)(i)(b)(3)Proceeds from the sale or exchange of any assets contributed to the trust by the donor must be allocated to principal and not to trust income at least to the extent of the fair market value of those assets on the date of their contribution to the trust. Checked 2026-10-11.
  • 26 CFR § 1.664-3 (LII), § 1.664-3(a)(1)(i)(b)(3)Except as provided in the two preceding sentences, proceeds from the sale or exchange of any assets contributed to the trust by the donor or purchased by the trust may be allocated to income, pursuant to the terms of the governing instrument, if not prohibited by applicable local law. Checked 2026-10-11.

Proceeds from the sale or exchange of assets the trust purchased must be allocated to principal, not trust income, at least to the extent of the trust's purchase price of those assets.

  • 26 CFR § 1.664-3 (LII), § 1.664-3(a)(1)(i)(b)(3)Proceeds from the sale or exchange of any assets purchased by the trust must be allocated to principal and not to trust income at least to the extent of the trust's purchase price of those assets. Checked 2026-10-11.

A charitable remainder annuity trust (and, under the parallel language of § 664(d)(2)(A), a charitable remainder unitrust) must pay its annual amount to one or more persons, at least one of which is not an organization described in section 170(c); a charity may be among those paid, but cannot be the only recipient of the payments.

  • 26 U.S.C. § 664 (LII), § 664(d)(1)(A)is to be paid, not less often than annually, to one or more persons (at least one of which is not an organization described in section 170(c) and, in the case of individuals, only to an individual who is living at the time of the creation of the trust) Checked 2026-10-11.

A one-time qualified charitable distribution to a split-interest entity meets the statute's requirements only if no person other than the IRA owner, the owner's spouse, or both holds an income interest in the entity, AND the income interest in the entity is nonassignable.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(iv)(II)the income interest in the split-interest entity is nonassignable Checked 2026-10-11.
  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(iv)(I)no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained, the spouse of such individual, or both Checked 2026-10-11.

Because section 408(d)(8)(F)(ii)(III) defines a charitable gift annuity by reference to section 501(m)(5), which requires the annuity to be described in section 514(c)(5), the contract must also satisfy section 514(c)(5)'s conditions: the value of the annuity must be less than 90 percent of the value of the property transferred, the contract must not guarantee a minimum amount of payments or specify a maximum amount of payments, and the payment amount must not be adjusted by reference to income received from the transferred or other property.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(ii)(III)a charitable gift annuity (as defined in section 501(m)(5)), but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of 5 percent or greater not later than 1 year from the date of funding. Checked 2026-10-11.
  • 26 U.S.C. § 501 (LII), § 501(m)(5)(B)the annuity is described in section 514(c)(5) (determined as if any amount paid in cash in connection with such issuance were property) Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(5)(A)is the sole consideration (other than a mortgage to which paragraph (2)(B) applies) issued in exchange for property if, at the time of the exchange, the value of the annuity is less than 90 percent of the value of the property received in the exchange Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(5)(C)is payable under a contract which— (i) does not guarantee a minimum amount of payments or specify a maximum amount of payments, and (ii) does not provide for any adjustment of the amount of the annuity payments by reference to the income received from the transferred property or any other property Checked 2026-10-11.

A charitable gift annuity is defined by reference to section 514(c)(5), which requires the annuity to be payable over the life of one individual in being when it is issued, or over the lives of two such individuals.

  • 26 U.S.C. § 501 (LII), § 501(m)(5)(B)the annuity is described in section 514(c)(5) (determined as if any amount paid in cash in connection with such issuance were property) Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(5)(B)is payable over the life of one individual in being at the time the annuity is issued, or over the lives of two individuals in being at such time Checked 2026-10-11.

A CRAT or CRUT used for the one-time split-interest QCD may pay its income interest for a term of years not in excess of 20 years, or for the life or lives of the individuals. Section 408(d)(8)(F)(ii) defines the split-interest entity by reference to section 664(d)(1) and 664(d)(2) and adds no requirement that the income interest run for life.

  • 26 U.S.C. § 664 (LII), § 664(d)(1)(A)for a term of years (not in excess of 20 years) or for the life or lives of such individual or individuals Checked 2026-10-11.
  • 26 U.S.C. § 664 (LII), § 664(d)(2)(A)a fixed percentage (which is not less than 5 percent nor more than 50 percent) of the net fair market value of its assets, valued annually, is to be paid, not less often than annually, to one or more persons (at least one of which is not an organization described in section 170(c) and, in the case of individuals, only to an individual who is living at the time of the creation of the trust) for a term of years (not in excess of 20 years) or for the life or lives of such individual or individuals Checked 2026-10-11.
  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(ii)the term 'split-interest entity' means—(I) a charitable remainder annuity trust (as defined in section 664(d)(1)), but only if such trust is funded exclusively by qualified charitable distributions, (II) a charitable remainder unitrust (as defined in section 664(d)(2)), but only if such unitrust is funded exclusively by qualified charitable distributions Checked 2026-10-11.

The split-interest QCD deductibility test in section 408(d)(8)(F)(iii) is applied without regard to section 170(b), so the AGI percentage limits on charitable deductions are ignored when testing whether the deduction would be allowable.

  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(iii)(I)In the case of a distribution to a charitable remainder annuity trust or a charitable remainder unitrust, a deduction for the entire value of the remainder interest in the distribution for the benefit of a specified charitable organization would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph). Checked 2026-10-11.
  • 26 U.S.C. § 408 (LII), § 408(d)(8)(F)(iii)(II)In the case of a charitable gift annuity, a deduction in an amount equal to the amount of the distribution reduced by the value of the annuity described in section 501(m)(5)(B) would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph). Checked 2026-10-11.

For an individual, capital losses are allowed first against capital gains. Any excess loss is deductible against other income only up to $3,000 a year ($1,500 for a married individual filing a separate return). A net capital loss beyond that is carried to the succeeding taxable year, keeping its short-term or long-term character.

  • 26 U.S.C. § 1211 (LII), § 1211(b)losses from sales or exchanges of capital assets shall be allowed only to the extent of the gains from such sales or exchanges, plus (if such losses exceed such gains) the lower of—(1) $3,000 ($1,500 in the case of a married individual filing a separate return), or (2) the excess of such losses over such gains. Checked 2026-10-11.
  • 26 U.S.C. § 1212 (LII), § 1212(b)(1)(A)-(B)the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year Checked 2026-10-11.

Under § 1015(a) the person who receives a gift of property generally takes the donor's basis, but that carryover basis is limited where the property is worth less than the donor's basis at the time of the gift: if the donor's adjusted basis is greater than the fair market value of the property at the time of the gift, then for the purpose of determining loss the basis is that fair market value.

  • 26 U.S.C. § 1015 (LII), § 1015(a)If the property was acquired by gift after December 31, 1920, the basis shall be the same as it would be in the hands of the donor or the last preceding owner by whom it was not acquired by gift, Checked 2026-10-11.
  • 26 U.S.C. § 1015 (LII), § 1015(a), loss-basis provisoexcept that if such basis (adjusted for the period before the date of the gift as provided in section 1016) is greater than the fair market value of the property at the time of the gift, then for the purpose of determining loss the basis shall be such fair market value. Checked 2026-10-11.

An individual who makes a transfer by gift in a calendar year must file a gift tax return for that year, unless the transfer is one the statute excepts — including a transfer that the § 2503(b) annual exclusion keeps out of the total amount of gifts for the year. So a gift to a person above the annual exclusion amount requires a gift tax return even when no gift tax is owed.

  • 26 U.S.C. § 6019 (LII), § 6019Any individual who in any calendar year makes any transfer by gift other than—(1) a transfer which under subsection (b) or (e) of section 2503 is not to be included in the total amount of gifts for such year, (2) a transfer of an interest with respect to which a deduction is allowed under section 2523, or (3) a transfer with respect to which a deduction is allowed under section 2522 but only if—(A)(i) such transfer is of the donor's entire interest in the property transferred, and (ii) no other interest in such property is or has been transferred (for less than adequate and full consideration in money or money's worth) from the donor to a person, or for a use, not described in subsection (a) or (b) of section 2522, or (B) such transfer is described in section 2522(d), shall make a return for such year with respect to the gift tax imposed by subtitle B. Checked 2026-10-11.
  • 26 U.S.C. § 2503 (LII), § 2503(b)(1)In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year. Checked 2026-10-11.
  • Frequently asked questions on gift taxes (IRS), Annual exclusion table and "How many annual exclusions are available?"The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $19,000 in 2026, the annual exclusion applies to each gift. Checked 2026-10-11.

Two exceptions keep a gift out of the § 6019 gift tax return requirement even when it exceeds the annual exclusion. First, § 6019(2) excepts a transfer for which a deduction is allowed under § 2523, and § 2523(a) allows a deduction equal to the full value of an interest in property given to the donor's spouse; § 2523(i)(1) denies that deduction if the spouse is not a United States citizen. Second, § 6019(1) excepts a transfer that § 2503(e) keeps out of the total amount of gifts, and § 2503(e) provides that a qualified transfer — tuition paid to an educational organization, or a payment made to a provider of medical care, on behalf of an individual — is not treated as a gift at all, with no dollar limit.

  • 26 U.S.C. § 6019 (LII), § 6019(1)-(2)Any individual who in any calendar year makes any transfer by gift other than—(1) a transfer which under subsection (b) or (e) of section 2503 is not to be included in the total amount of gifts for such year, (2) a transfer of an interest with respect to which a deduction is allowed under section 2523 Checked 2026-10-11.
  • 26 U.S.C. § 2503 (LII), § 2503(e)(1)-(2)Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter. ... any amount paid on behalf of an individual—(A) as tuition to an educational organization described in section 170(b)(1)(A)(ii) for the education or training of such individual, or (B) to any person who provides medical care (as defined in section 213(d)) with respect to such individual as payment for such medical care. Checked 2026-10-11.
  • 26 U.S.C. § 2523 (LII), § 2523(a); § 2523(i)(1)Where a donor transfers during the calendar year by gift an interest in property to a donee who at the time of the gift is the donor's spouse, there shall be allowed as a deduction in computing taxable gifts for the calendar year an amount with respect to such interest equal to its value. ... no deduction shall be allowed under this section Checked 2026-10-11.

The § 2503(e) qualified transfer exclusion is limited in scope. On the education side, § 2503(e)(2)(A) reaches an amount paid as tuition to an educational organization described in § 170(b)(1)(A)(ii), and 26 CFR 25.2503-6(b)(2) states that no unlimited exclusion is permitted for amounts paid for books, supplies, dormitory fees, board, or other similar expenses which do not constitute direct tuition costs. On the medical side, § 2503(e)(2)(B) reaches a payment to a person who provides medical care as defined in § 213(d). Within those limits the exclusion carries no dollar cap, because § 2503(e)(1) provides that a qualified transfer is not treated as a transfer of property by gift at all.

  • 26 U.S.C. § 2503 (LII), § 2503(e)(1)-(2)Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter. ... any amount paid on behalf of an individual—(A) as tuition to an educational organization described in section 170(b)(1)(A)(ii) for the education or training of such individual, or (B) to any person who provides medical care (as defined in section 213(d)) with respect to such individual as payment for such medical care. Checked 2026-10-11.
  • 26 CFR § 25.2503-6 (LII), § 25.2503-6(b)(2)No unlimited exclusion is permitted for amounts paid for books, supplies, dormitory fees, board, or other similar expenses which do not constitute direct tuition costs. Checked 2026-10-11.

The annual exclusion is not the only thing that decides whether a gift tax return is due. Section 6019(1) excepts from the return requirement only a transfer that section 2503(b) or (e) keeps out of the total amount of gifts, and section 2503(b)(1) applies only to gifts 'other than gifts of future interests in property', so by my reading a gift of a future interest — the form many gifts into a trust take — is not excepted by section 6019(1) at any size. Separately, gift splitting under section 2513(a)(1) applies only if both spouses signify consent under section 2513(a)(2), and 26 CFR 25.2513-2(a)(1) requires that consent to be signified on gift tax returns, so a couple who choose to split gifts file a return in order to do so.

  • 26 U.S.C. § 6019 (LII), § 6019(1)Any individual who in any calendar year makes any transfer by gift other than—(1) a transfer which under subsection (b) or (e) of section 2503 is not to be included in the total amount of gifts for such year Checked 2026-10-11.
  • 26 U.S.C. § 2503 (LII), § 2503(b)(1)In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year. Checked 2026-10-11.
  • 26 U.S.C. § 2513 (LII), § 2513(a)(1)-(2)A gift made by one spouse to any person other than his spouse shall, for the purposes of this chapter, be considered as made one-half by him and one-half by his spouse, but only if at the time of the gift each spouse is a citizen or resident of the United States. ... Paragraph (1) shall apply only if both spouses have signified (under the regulations provided for in subsection (b)) their consent to the application of paragraph (1) in the case of all such gifts made during the calendar year by either while married to the other. Checked 2026-10-11.
  • 26 CFR § 25.2513-2 (LII), § 25.2513-2(a)(1)Consent to the application of the provisions of section 2513 with respect to a “calendar period” (as defined in § 25.2502-1(c)(1)) shall, in order to be effective, be signified by both spouses. If both spouses file gift tax returns within the time for signifying consent, it is sufficient if— Checked 2026-10-11.

A "sponsoring organization" under 26 U.S.C. § 4966(d)(1) has three elements: the organization (A) is described in § 170(c), other than paragraph (1) thereof and without regard to paragraph (2)(A) thereof, (B) is not a private foundation as defined in § 509(a), and (C) maintains one or more donor advised funds. Element (A) excludes a § 170(c)(1) governmental unit, and element (C) is a separate requirement.

  • 26 U.S.C. § 4966 (LII), § 4966(d)(1)(A)-(C)(A) is described in section 170(c) (other than in paragraph (1) thereof, and without regard to paragraph (2)(A) thereof), (B) is not a private foundation (as defined in section 509(a)), and (C) maintains 1 or more donor advised funds. Checked 2026-10-12.

The gift tax return exception for gifts to a spouse is not automatic for every spousal gift. Section 6019(2) excepts only a transfer of an interest with respect to which a deduction is allowed under section 2523, and section 2523(b) denies that deduction where the interest transferred to the spouse will terminate or fail and the donor retains, or has transferred to someone other than the donee spouse, an interest in the same property. A gift of such a terminable interest, for example certain interests placed in trust for a spouse, therefore gets no section 2523 deduction and remains subject to the section 6019 return requirement.

  • 26 U.S.C. § 6019 (LII), § 6019(2)(2) a transfer of an interest with respect to which a deduction is allowed under section 2523 Checked 2026-10-11.
  • 26 U.S.C. § 2523 (LII), § 2523(b)(1)Where, on the lapse of time, on the occurrence of an event or contingency, or on the failure of an event or contingency to occur, such interest transferred to the spouse will terminate or fail, no deduction shall be allowed with respect to such interest—(1) if the donor retains in himself, or transfers or has transferred (for less than an adequate and full consideration in money or money's worth) to any person other than such donee spouse (or the estate of such spouse), an interest in such property, and if by reason of such retention or transfer the donor (or his heirs or assigns) or such person (or his heirs or assigns) may possess or enjoy any part of such property after such termination or failure of the interest transferred to the donee spouse Checked 2026-10-11.

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

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

On the 2025 Form 1040, line 4c carries checkboxes for IRA distributions, and box 2 is labeled QCD. That box is how a QCD included in line 4a is flagged on the return.

The private foundations referred to in section 170(b)(1)(A)(vii) are those described in section 170(b)(1)(F): a private operating foundation under section 4942(j)(3); a pass-through foundation that distributes 100 percent of the contributions it receives as qualifying distributions out of corpus by the 15th day of the third month after the close of its taxable year; and a pooled-fund foundation whose contributions are pooled in a common fund with the income and corpus required to be paid out to section 509(a)(1) organizations.

  • 26 U.S.C. § 170 (LII), § 170(b)(1)(F) introductory text and cl. (i)The private foundations referred to in subparagraph (A)(vii) and subsection (e)(1)(B) are— (i) a private operating foundation (as defined in section 4942(j)(3)), Checked 2026-10-11.
  • 26 U.S.C. § 170 (LII), § 170(b)(1)(F)(ii)any other private foundation (as defined in section 509(a)) which, not later than the 15th day of the third month after the close of the foundation's taxable year in which contributions are received, makes qualifying distributions (as defined in section 4942(g), without regard to paragraph (3) thereof), which are treated, after the application of section 4942(g)(3), as distributions out of corpus (in accordance with section 4942(h)) in an amount equal to 100 percent of such contributions Checked 2026-10-11.
  • 26 U.S.C. § 170 (LII), § 170(b)(1)(F)(iii)a private foundation all of the contributions to which are pooled in a common fund and which would be described in section 509(a)(3) but for the right of any substantial contributor Checked 2026-10-11.

The final RMD regulations leave the applicable age for an employee born in 1959 reserved. In proposed regulations published July 19, 2024 (REG-103529-23), Treasury and the IRS proposed that the applicable age for an employee born in 1959 is 73. The preamble explains that such an employee is described in both section 401(a)(9)(C)(v)(I) (age 73) and section 401(a)(9)(C)(v)(II) (age 75). The proposed rule had not been finalized as of the retrieval date; the current Code of Federal Regulations still shows paragraph (b)(2)(v) as reserved.

The § 170(b)(1)(A) class of organizations includes a governmental unit referred to in § 170(c)(1) — a State, a US possession, any political subdivision of either, the United States, or the District of Columbia — but only where the gift is made for exclusively public purposes. Because a QCD recipient must be a § 170(b)(1)(A) organization, a gift to such a government unit for exclusively public purposes is within the eligible class.

  • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)(v)a governmental unit referred to in subsection (c)(1), Checked 2026-10-11.
  • 26 U.S.C. § 170 (LII), § 170(c)(1)A State, a possession of the United States, or any political subdivision of any of the foregoing, or the United States or the District of Columbia, but only if the contribution or gift is made for exclusively public purposes. Checked 2026-10-11.

Publication 590-B lets a designated beneficiary of more than one IRA owned by a single decedent total those required minimum distributions and take the total from any one or more of them; it does not state whether inherited IRAs on different payout schedules may be totaled.

  • IRS Publication 590-B, Ch. 1, Miscellaneous Rules for Required Minimum DistributionsIf you are the owner of more than one traditional IRA, you must determine a separate required minimum distribution for each IRA. However, you can total these minimum amounts and take the total from any one or more of the IRAs. Checked 2026-10-11.
  • IRS Publication 590-B, Ch. 1, Miscellaneous Rules for Required Minimum DistributionsThe same rule applies if you are a designated beneficiary of more than one IRA that was owned by a single decedent. Checked 2026-10-11.

The 5-year rule applies to beneficiaries who are not designated beneficiaries (such as the owner's estate) when the owner died before their required beginning date.

  • IRS Publication 590-B (2025), Ch. 1, IRA Beneficiaries, Owner Died Before Required Beginning Date, 5-year ruleThe 5-year rule applies to beneficiaries who are not designated beneficiaries if the owner died before their required beginning date. Checked 2026-10-11.

If you inherit a traditional IRA from a person who had basis in it from nondeductible contributions, that basis remains with the inherited IRA.

  • IRS Publication 590-B, Ch. 1, What if You Inherit an IRA? — IRA with basisIf you inherit a traditional IRA from a person who had basis in the IRA because of nondeductible contributions, that basis remains with the IRA. Checked 2026-10-11.

When the owner died on or after the required beginning date and there is no designated beneficiary, required minimum distributions are figured using the owner's own life expectancy.

  • IRS Publication 590-B (2025), Ch. 1, Figuring the Owner's Required Minimum Distribution, Life expectancy (Owner Died on or After Required Beginning Date)If there is no designated beneficiary, use the owner's life expectancy. Checked 2026-10-11.

Section 401(a)(9) applies separately to Roth IRAs and to IRAs that are not Roth IRAs: a beneficiary required to receive minimum distributions under a Roth IRA may satisfy one Roth IRA's minimum distribution from another Roth IRA only if both were inherited from the same decedent, and a distribution from an IRA that is not a Roth IRA may not be used to satisfy a Roth IRA's required minimum distribution.

  • 26 CFR § 1.408A-6 (LII), Q&A-15In addition, an individual required to receive minimum distributions as a beneficiary under a Roth IRA can only satisfy the minimum distributions for one Roth IRA by distributing from another Roth IRA if the Roth IRAs were inherited from the same decedent. Checked 2026-10-12.
  • 26 CFR § 1.408-8 (LII), § 1.408-8(e)(3)Distributions from an IRA that is not a Roth IRA may not be used to satisfy the required minimum distribution requirements with respect to a Roth IRA Checked 2026-10-12.

A person taking distributions from both an inherited IRA with basis and their own IRA with basis must complete separate Forms 8606 to figure the taxable and nontaxable parts.

  • IRS Publication 590-B, Ch. 1, What if You Inherit an IRA? — IRA with basisIf you take distributions from both an inherited IRA and your IRA, and each has basis, you must complete separate Forms 8606 to determine the taxable and nontaxable portions of those distributions. Checked 2026-10-11.

A surviving spouse is considered to have chosen to treat an inherited IRA as their own only if they are the sole beneficiary of the IRA and have an unlimited right to withdraw amounts from it.

  • IRS Publication 590-B (2025), Ch. 1, What if You Inherit an IRA, Inherited from spouse, Treating it as your ownYou will only be considered to have chosen to treat the IRA as your own if: You are the sole beneficiary of the IRA, and You have an unlimited right to withdraw amounts from it. Checked 2026-10-11.

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.

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.

When the IRS reports a tax filing status of married filing separately, SSA assumes the couple lived together at some point in the tax year, which is what puts the beneficiary on the separate married-filing-separately IRMAA table.

  • SSA POMS HI 01101.020 IRMAA Sliding Scale Tables, B.3, NOTE to the married filing separately tableWhen the Internal Revenue Service (IRS) provides us the tax filing status of married filing separately, assume the couple lived together at some point in the tax year. Checked 2026-10-11.

To be moved off the married-filing-separately IRMAA table for living apart all year, the beneficiary must give SSA an attestation to that effect under penalty of perjury, and the change is effective only for the spouse who attests.

A beneficiary who filed married filing separately but lived apart from their spouse throughout the entire tax year has IRMAA determined from the table for single, head-of-household or qualifying surviving spouse filers, not the married-filing-separately table.

As the statute now reads, the 60% cash limit applies to any contribution of cash to an organization described in § 170(b)(1)(A), with no carve-out for § 509(a)(3) supporting organizations or § 4966(d)(2) donor advised funds. Clause (b)(1)(G)(ii) is a carryover rule, not an exclusion, and the only § 170 provisions mentioning § 4966 or § 509(a)(3) in connection with donor advised funds are deductibility conditions, not percentage limits. Pub. 526 states the general 60% ceiling and does not place cash given to a donor advised fund under the 50% limit.

  • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(i)For taxable years beginning after December 31, 2017, any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction under subsection (a) to the extent that the aggregate of such contributions does not exceed the excess of— Checked 2026-10-11.
  • 26 U.S.C. § 170 (LII), § 170(b)(1)(G)(ii)Carryover If the aggregate amount of contributions described in clause (i) exceeds the applicable limitation under clause (i) for any taxable year described in such clause, such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time. Checked 2026-10-11.
  • 26 U.S.C. § 170 (LII), § 170(f)(18), the only donor-advised-fund condition in § 170A deduction otherwise allowed under subsection (a) for any contribution to a donor advised fund (as defined in section 4966(d)(2)) Checked 2026-10-11.
  • IRS Publication 526, Charitable Contributions, Limits on DeductionsYour deduction for charitable contributions generally can't be more than 60% of your AGI Checked 2026-10-11.

A surviving spouse who is the sole designated beneficiary may elect the treatment in section 401(a)(9)(B)(iv): the regulations then treat the surviving spouse as if the surviving spouse were the employee, and the date distributions are required to begin is no earlier than the date the deceased employee would have attained the applicable age. Rules similar to section 401(a)(9) apply to IRAs under section 408(a)(6). The treatment is an affirmative election by the surviving spouse, not an automatic default: the statute applies it only where "the surviving spouse elects the treatment in this clause," and the regulations describe a provision under which the surviving spouse "may elect to be treated as the employee for purposes of determining the required minimum distribution for a calendar year."

  • 26 U.S.C. § 401 (LII), § 401(a)(9)(B)(iv)If the designated beneficiary referred to in clause (iii)(I) is the surviving spouse of the employee and the surviving spouse elects the treatment in this clause— Checked 2026-10-12.
  • 26 U.S.C. § 401 (LII), § 401(a)(9)(B)(iv)(I)the regulations referred to in clause (iii)(II) shall treat the surviving spouse as if the surviving spouse were the employee, Checked 2026-10-12.
  • 26 U.S.C. § 401 (LII), § 401(a)(9)(B)(iv)(II)the date on which the distributions are required to begin under clause (iii)(III) shall not be earlier than the date on which the employee would have attained the applicable age, and Checked 2026-10-12.
  • 26 C.F.R. § 1.401(a)(9)-5 (LII), § 1.401(a)(9)-5(g)(3)(i)A defined contribution plan may include a provision, applicable to an employee whose sole beneficiary is that employee's surviving spouse, under which the surviving spouse may elect to be treated as the employee for purposes of determining the required minimum distribution for a calendar year under this section. Checked 2026-10-12.
  • 26 C.F.R. § 1.401(a)(9)-3 (LII), § 1.401(a)(9)-3(d)(1)If the employee's surviving spouse is the employee's sole beneficiary, then the commencement of distributions under paragraph (b)(3) or (c)(4) of this section may be delayed until the end of the calendar year in which the employee would have attained the applicable age. Checked 2026-10-12.
  • 26 C.F.R. § 1.408-8 (LII), § 1.408-8(a)(1)An IRA is subject to the required minimum distribution requirements of section 401(a)(9). In order to satisfy section 401(a)(9), the rules of §§ 1.401(a)(9)-1 through 1.401(a)(9)-9 must be applied, except as otherwise provided in this section. Checked 2026-10-12.
  • 26 U.S.C. § 408 (LII), § 408(a)(6)Under regulations prescribed by the Secretary, rules similar to the rules of section 401(a)(9) and the incidental death benefit requirements of section 401(a) shall apply to the distribution of the entire interest of an individual for whose benefit the trust is maintained. Checked 2026-10-12.

An acknowledgment is "contemporaneous" for the $250 substantiation rule only if the taxpayer obtains it by the earlier of the date the return for the contribution year is filed or that return's due date, including extensions. So a gift of $250 or more is deductible only with an acknowledgment in hand no later than filing.

  • 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 2026-10-12.
  • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)(i)the date on which the taxpayer files a return for the taxable year in which the contribution was made Checked 2026-10-12.
  • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)(ii)the due date (including extensions) for filing such return Checked 2026-10-12.

The one-rollover-per-12-months limit applies only to IRA-to-IRA rollovers. It does not apply to trustee-to-trustee transfers to another IRA, to conversions from a traditional IRA to a Roth IRA, or to rollovers between an IRA and an employer plan.

On a Form 1040 return, the IRA deduction is reported on Schedule 1 (Form 1040), Part II (Adjustments to Income); on the 2025 form it is line 20 of Part II. It is not a line on Form 1040 itself, so a reader looking only at Form 1040 would not find it.

An employer plan cannot make a QCD, so the tool tells the reader the money would first have to reach an IRA. That route is not open to every plan: a section 457(b) plan counts as an eligible retirement plan for rollover purposes only when it is maintained by a State or local government employer, so a 457(b) plan of a nongovernmental employer cannot be rolled to an IRA.

  • 26 U.S.C. § 402 (LII), § 402(c)(8)(B) — definition of "eligible retirement plan"an eligible deferred compensation plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A) Checked 2026-10-12.
  • 26 U.S.C. § 457 (LII), § 457(e)(1)(A)a State, political subdivision of a State, and any agency or instrumentality of a State or political subdivision of a State Checked 2026-10-12.

The contemporaneous written acknowledgment is required for a contribution of $250 or more. A cash, check or other monetary gift of any size must instead be recorded by a bank record or a written communication from the charity showing its name, the date and the amount. A QCD must meet the same § 170 substantiation rules, so the checker states the $250 threshold rather than requiring an acknowledgment for every gift.

  • 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 of the contribution by the donee organization that meets the requirements of subparagraph (B). Checked 2026-10-12.
  • 26 U.S.C. § 170 (LII), § 170(f)(17)No deduction shall be allowed under subsection (a) for any contribution of a cash, check, or other monetary gift unless the donor maintains as a record of such contribution a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution. Checked 2026-10-12.

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.

The qualified appraisal requirement is keyed to the deduction claimed, not the property's value: it applies to contributions of property for which a deduction of more than $5,000 is claimed. In applying that threshold, the property and all similar items of property donated to one or more donees are treated as one property.

  • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)In the case of contributions of property for which a deduction of more than $5,000 is claimed, the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal of such property and attaches to the return for the taxable year in which such contribution is made such information regarding such property and such appraisal as the Secretary may require. Checked 2026-10-11.
  • 26 U.S.C. § 170 (LII), § 170(f)(11)(F)For purposes of determining thresholds under this paragraph, property and all similar items of property donated to 1 or more donees shall be treated as 1 property. Checked 2026-10-11.

Unrelated business taxable income includes income from debt-financed property — property held to produce income that is subject to acquisition indebtedness, such as a building with a mortgage on it. So for a charitable remainder trust, whose unrelated business taxable income is hit with a 100% excise tax under § 664(c)(2)(A), part of the income from a mortgaged asset is caught by that tax.

  • 26 U.S.C. § 512 (LII), § 512(b)(4)Notwithstanding paragraph (1), (2), (3), or (5), in the case of debt-financed property (as defined in section 514) there shall be included, as an item of gross income derived from an unrelated trade or business, the amount ascertained under section 514(a)(1), and there shall be allowed, as a deduction, the amount ascertained under section 514(a)(2). Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(b)(1)For purposes of this section, the term "debt-financed property" means any property which is held to produce income and with respect to which there is an acquisition indebtedness (as defined in subsection (c)) at any time during the taxable year Checked 2026-10-11.
  • 26 U.S.C. § 514 (LII), § 514(c)(1)For purposes of this section, the term "acquisition indebtedness" means, with respect to any debt-financed property, the unpaid amount of— Checked 2026-10-11.

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.

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.

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.

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.)

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

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

A donor may elect to apply the 50% limit (instead of 30%) to capital gain property given to public charities, but must then reduce the deduction by the long-term gain (generally to basis). The election covers all such capital gain gifts for the year and affects carryovers.

  • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(iii)At the election of the taxpayer (made at such time and in such manner as the Secretary prescribes by regulations), subsection (e)(1) shall apply to all contributions of capital gain property (to which subsection (e)(1)(B) does not otherwise apply) made by the taxpayer during the taxable year. Checked 2026-10-09.
  • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)shall be allowed to the extent that the aggregate of such contributions does not exceed 50 percent of the taxpayer’s contribution base for the taxable year. Checked 2026-10-09.
  • IRS Publication 526 (2025), Capital gain property electionIf you make this choice, you must reduce the FMV of the property contributed by the appreciation in value that would have been long-term capital gain if the property had been sold. Checked 2026-10-09.
  • IRS Publication 526 (2025), Capital gain property electionThis choice applies to all capital gain property contributed to 50% limit organizations during a tax year. It also applies to carryovers of this kind of contribution from an earlier tax year. Checked 2026-10-09.

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.

No deduction is allowed for a contribution at or above the statutory threshold unless substantiated by a contemporaneous written acknowledgment from the charity.

  • 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 of the contribution by the donee organization Checked 2026-10-09.

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.

Form 8283 is required when the deduction for a noncash gift (or group of similar items) exceeds a dollar threshold set in the instructions; publicly traded securities are reported in Section A regardless of amount (no Section B appraisal); other property over the higher threshold goes in Section B. Basis need not be entered for publicly traded securities held over 12 months unless the basis election is made.

  • Instructions for Form 8283 (Rev. 12/2025), Who Must FileYou must file one or more Forms 8283 if the amount of your deduction for each noncash contribution is more than $500. Checked 2026-10-09.
  • Instructions for Form 8283 (Rev. 12/2025), Specific Instructions, Section A, SecuritiesFor donations of publicly traded securities in any amount, you should only use Section A. Checked 2026-10-09.
  • Instructions for Form 8283 (Rev. 12/2025), Requirement to fully complete Sections A and BFilers reporting a noncash charitable contribution of over $5,000 must fully complete Section B. Checked 2026-10-09.
  • Instructions for Form 8283 (Rev. 12/2025), Section A, Column (g)Do not complete this column for publicly traded securities held more than 12 months, unless you elect to limit your deduction cost basis. See section 170(b)(1)(C)(iii). Checked 2026-10-09.

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.

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.

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.

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.

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.

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.

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.

A surviving spouse who is sole designated beneficiary and keeps the IRA as a beneficiary uses the Single Life table (Table I) each year; one who treats it as their own uses the Uniform Lifetime table (Table III). If the owner died before the required beginning date, a sole-beneficiary spouse need not begin RMDs until the end of the year the owner would have reached the required beginning date.

  • IRS Publication 590-B (2025), Ch. 1, Figuring the beneficiary's RMD, Surviving spouse is sole designated beneficiaryIf you are the owner’s surviving spouse, then the applicable denominator continues to be determined each subsequent year using Table I Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, same paragraphHowever, if you elect to treat the inherited IRA as your own, you will use Table III Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, IRA Beneficiaries, Year of first required distributionthe spouse isn’t required to begin receiving minimum distributions until the end of the year in which the IRA owner would have reached their required beginning date Checked 2026-10-09.

If an IRA owner dies on or after the required beginning date, the beneficiaries must take any part of the owner's year-of-death RMD not already distributed, figured as if the owner lived the entire year.

  • IRS Publication 590-B (2025), Ch. 1, Required minimum distribution for the year of the owner's deathIf the owner died on or after the required beginning date, the IRA beneficiaries are responsible for figuring and distributing the owner's required minimum distribution in the year of death. Checked 2026-10-09.
  • IRS Publication 590-B (2025), Ch. 1, same sectionYou figure the required minimum distribution for the year in which an IRA owner dies as if the owner lived for the entire year. Checked 2026-10-09.

A charitable gift annuity is treated as a bargain sale: the gift portion (property value minus the present value of the annuity) is the charitable contribution; basis is allocated to the annuity portion, and for a nonassignable annuity to the donor (and survivor) the resulting gain can be reported ratably over the expected payout period; each payment is split under § 72 into a tax-free return of investment, capital gain, and ordinary annuity income.

  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(a)(4)(ii)If in such case the annuity received in exchange for the property is nonassignable, or is assignable but only to the charitable organization to which the property is sold or exchanged Checked 2026-10-09.
  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(c) Example 8(b)Thus, A makes a charitable contribution to the church of $40,245 ($100,000 −$59,755). Checked 2026-10-09.
  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(c) Example 8(c)Such gain is to be reported by A ratably over the period of years measured by the expected return multiple under the contract , but only from that portion of the annual payments which is a return of his investment in the contract under section 72 of the Code . Checked 2026-10-09.
  • 26 CFR § 1.1011-2 (LII), § 1.1011-2(c) Example 8(d)Ordinary annuity income ($5,000−$3,985) $1,015.00 Checked 2026-10-09.

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.

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

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

A CRAT or CRUT is not subject to federal income tax, so it can sell contributed appreciated assets without paying tax at the trust level; unrelated business taxable income is hit with a 100% excise tax. The IRS describes deferral of income tax on sales of contributed assets as a reason to create a CRT; the trust takes the donor's carryover basis.

  • 26 U.S.C. § 664 (LII), § 664(c)(1)shall, for any taxable year, not be subject to any tax imposed by this subtitle. Checked 2026-10-09.
  • 26 U.S.C. § 664 (LII), § 664(c)(2)(A)there is hereby imposed on such trust or unitrust an excise tax equal to the amount of such unrelated business taxable income. Checked 2026-10-09.
  • IRS: Charitable remainder trusts, Reasons to create a charitable remainder trustAllow you to defer income taxes on the sale of assets transferred to the trust Checked 2026-10-09.
  • IRS: Charitable remainder trusts, How a charitable remainder trust worksThe trust's basis in the transferred assets is carryover basis, which is the same basis that it would be in the hands of the donor Checked 2026-10-09.

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

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

A donor to a CRT gets a partial charitable deduction equal to the present value of the charity's remainder interest, computed with IRS actuarial tables and the § 7520 rate (120% of the federal midterm rate, rounded to the nearest 0.2%), with an election to use either of the two prior months' rates. A remainder interest in trust is deductible only if the trust is a CRAT, CRUT or pooled income fund. The deduction is subject to AGI limits and § 170(e).

  • IRS: Charitable remainder trusts, Charitable deductions for contributionsThe deduction is limited to the present value of the charitable organization's remainder interest. Checked 2026-10-09.
  • IRS: Charitable remainder trusts, Charitable deductions for contributionsThe charitable deduction is also subject to adjusted gross income limits and limitations under Internal Revenue Code (IRC) Section§ 170(e) . Checked 2026-10-09.
  • 26 U.S.C. § 7520 (LII), § 7520(a)equal to 120 percent of the Federal midterm rate in effect under section 1274(d)(1) for the month in which the valuation date falls. Checked 2026-10-09.
  • 26 U.S.C. § 7520 (LII), § 7520(a)the taxpayer may elect to use such Federal midterm rate for either of the 2 months preceding the month in which the valuation date falls Checked 2026-10-09.
  • 26 U.S.C. § 170 (LII), § 170(f)(2)(A)no deduction shall be allowed under this section for the value of a contribution of a remainder interest unless the trust is a charitable remainder annuity trust or a charitable remainder unitrust Checked 2026-10-09.

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.

A unitrust may start as an income-only unitrust and 'flip' to the standard fixed-percentage payout, if triggered by a specific date or a single non-discretionary event (such as sale of unmarketable assets, marriage, divorce, death or birth of a child), effective the following taxable year.

  • 26 CFR § 1.664-3 (LII), § 1.664-3(a)(1)(i)(c)(1)is triggered on a specific date or by a single event whose occurrence is not discretionary with, or within the control of, the trustees or any other persons Checked 2026-10-09.
  • 26 CFR § 1.664-3 (LII), § 1.664-3(a)(1)(i)(c)(2)occurs at the beginning of the taxable year that immediately follows the taxable year during which the date or event specified Checked 2026-10-09.
  • 26 CFR § 1.664-3 (LII), § 1.664-3(a)(1)(i)(d)triggering event based on the sale of unmarketable assets as defined in § 1.664-1(a)(7)(ii) , or the marriage, divorce, death, or birth of a child Checked 2026-10-09.

Payments from a CRT carry out the trust's income in four tiers: first ordinary income (current and undistributed prior), then capital gain, then other income (including tax-exempt income), then tax-free return of corpus. Payments are reported to the beneficiary on Schedule K-1 (Form 1041).

  • 26 U.S.C. § 664 (LII), § 664(b)(1)First, as amounts of income (other than gains, and amounts treated as gains, from the sale or other disposition of capital assets) includible in gross income Checked 2026-10-09.
  • 26 U.S.C. § 664 (LII), § 664(b)(2)Second, as a capital gain to the extent of the capital gain of the trust for the year and the undistributed capital gain of the trust for prior years Checked 2026-10-09.
  • 26 U.S.C. § 664 (LII), § 664(b)(4)Fourth, as a distribution of trust corpus. Checked 2026-10-09.
  • IRS: Charitable remainder trusts, Taxes on income paymentsOther income: Once all ordinary income and capital gains in the trust are fully distributed, payments are characterized as other income to the extent of the trust's current year and accumulated other income. This includes tax-exempt income. Checked 2026-10-09.
  • IRS: Charitable remainder trusts, Taxes on income paymentsmust be reported to them on Schedule K-1 (Form 1041) Checked 2026-10-09.

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.

Charitable remainder trusts are irrevocable, and each CRT must file Form 5227 annually.

  • IRS: Charitable remainder trusts, How a charitable remainder trust worksCharitable remainder trusts are irrevocable. Assets that go in can't be taken back. Checked 2026-10-09.
  • IRS: Charitable remainder trusts, Tax filingsCharitable remainder trusts must annually file Form 5227, Split-Interest Trust Information Return . Checked 2026-10-09.

The IRS states it closely examines CRTs for correct reporting, and lists inflating the basis of contributed assets and mischaracterizing ordinary income or capital gain distributions as corpus among illegal uses.

A unitrust may pay the lesser of trust income or the fixed percentage, with a make-up provision for prior shortfalls when income later exceeds the percentage (the 'net income' or NIMCRUT variant).

  • 26 U.S.C. § 664 (LII), § 664(d)(3)the amount of the trust income, if such amount is less than the amount required to be distributed under paragraph (2)(A) Checked 2026-10-09.
  • 26 U.S.C. § 664 (LII), § 664(d)(3)(B)to the extent that (by reason of subparagraph (A)) the aggregate of the amounts paid in prior years was less than the aggregate of such required amounts. Checked 2026-10-09.

A charity (a non-individual) named as a beneficiary means the account is treated as having no designated beneficiary, even if individuals are also named, unless the charity's interest is paid out (or it is otherwise removed) by September 30 of the year after the year of death.

  • 26 CFR § 1.401(a)(9)-4 (LII), § 1.401(a)(9)-4(b)If a person other than an individual is a beneficiary designated under the plan , the employee will be treated as having no designated beneficiary , even if individuals are also designated as beneficiaries. Checked 2026-10-09.
  • 26 CFR § 1.401(a)(9)-4 (LII), § 1.401(a)(9)-4(c)if any of the following events occurs by September 30 of the calendar year following the calendar year of the employee 's death, then that beneficiary is not treated as a beneficiary— Checked 2026-10-09.
  • 26 CFR § 1.401(a)(9)-4 (LII), § 1.401(a)(9)-4(c)(2)(iii)The beneficiary receives the entire benefit to which the beneficiary is entitled. Checked 2026-10-09.

After the year of death, the RMD rules apply separately to each beneficiary's interest if held in separate accounts meeting the regulation's separate-accounting requirements; separate accounts set up after the end of the year following the year of death do not get that treatment for earlier purposes.

  • 26 CFR § 1.401(a)(9)-8 (LII), § 1.401(a)(9)-8(a)(1)(i)section 401(a)(9) is applied separately with respect to the separate interests of each of the employee 's beneficiaries under the plan provided that those interests are held in separate accounts Checked 2026-10-09.
  • 26 CFR § 1.401(a)(9)-8 (LII), § 1.401(a)(9)-8(a)(1)(ii)are not established until after the end of the calendar year following the calendar year of the employee 's death Checked 2026-10-09.

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

Property acquired from a decedent generally takes a basis equal to its fair market value at the date of death.

  • 26 U.S.C. § 1014 (LII), § 1014(a)(1)the fair market value of the property at the date of the decedent’s death, Checked 2026-10-09.

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

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

A designated beneficiary who is not an eligible designated beneficiary must fully distribute an inherited IRA by the 10th anniversary of the owner's death.

  • IRS Publication 590-B (2025), IRA Beneficiaries, Individual designated beneficiariesIf the individual designated beneficiary is not an eligible designated beneficiary, the beneficiary is required to fully distribute the IRA by the 10th anniversary of the owner's death under the 10-year rule. Checked 2026-10-09.