Relief Act 2012 and Montini Catholic
One possible positive result of American hanging from the fiscal cliff: You may still have an opportunity to give to Montini Catholic AND receive a retroactive 2012 tax break! Please share with your family and friends:
Donors age 70½ or older are once again eligible to transfer up to $100,000 from their IRA accounts directly to qualified charities without having to pay income taxes on that money. Due to the late extension, Congress provided two special transition rules:
- Qualified charitable distributions made before February 1, 2013 may be counted retroactively for the 2012 tax year.
- A taxpayer who took a distribution from an IRA account in December 2012 may make a contribution to a qualified charity before February 1, 2013 and treat this as a direct transfer.
With these special rules in effect, an individual can make two qualified charitable contributions up to $100,000 each in 2013 – one by January 31, 2013 for the 2012 tax year and another anytime between February 1, 2013 and December 31, 2013 for the 2013 tax year. Even more, these distributions can count towards the IRA’s RMD (required minimum distribution) and do not show up on the 1040 form as part of the taxpayer’s gross income.