If you make any charitable donations and you have a traditional IRA… and you are over 70.5 years old!:

  • When you make a payment DIRECTLY from your IRA to a Charity, it is TAX FREE for federal and most states, so a donation of $1,000 only costs you $1,000. This strategy allows you to make perhaps $1,000 to $14,000 in donations and still take the MINIMUM ALLOWABLE (Standard Deduction) $27,400 (M.F.J.) By doing it this way, you could have a total deductions of ($14,000 + $27,400)
  • When you make a donation from your CHECKING ACCOUNT, you can only deduct $27,400 (M.F.J.,) AND, e.g. a $1,000 donation cost is $1,408 ($408 to IRS and CT + $1,000 to Charity.)