ARE YOU 70 ½ OR OLDER? YOU CAN EASILY HELP US!
Do you know about the new permanent legislation that can assist taxpayers and charities?
Providing Americans Tax Help 2015 is new federal legislation that may assist some citizens while simultaneously helping legitimate, not for-profit charities.
The law permits individuals who must take required minimum distributions (RMD) to donate money to charity. The donation is calculated in the RMD but is not calculated as taxable income. The charity receives the donation tax-free while the taxpayer can show a reduced income.
There are some situations where this may be helpful to an individual taxpayer but everyone should consult their financial advisor. This strategy might be helpful if it triggers the Mandated Medicare Income Adjustment fee or moves you into a higher tax bracket or into the Alternate Minimum Tax. You may just want to give from non-taxable income!
If you choose to make a donation this way, the check must come to the charity from the Financial Institution that holds the funds. You CANNOT take the money and pass it through your own checking account. You may wish to have the check sent to you so you can make a copy for your records and then forward it to the charity of your choice. But, it will be recorded properly on your annual notification from the financial institution. Finally you CANNOT use the donation as a tax deduction because you have used it to reduce your income reporting.
Friends of Southern Ocean County Animal Shelter is a worthy charity doing good work in your area. Think about helping us to help homeless companion animals and reduce more births of animals for whom there are no homes.
THIS INFORMATION IS NOT FINANCIAL ADVICE!!!! CALL YOUR TAX PERSON!!!