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Bunching Charitable Deductions in Retirement: How It Works in 2026

Josh Rendler, CFP®

Creator of Motion Retirement

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

How does bunching charitable donations work?

You give two or more years of gifts in one year. That year, your gifts plus other deductions can top the standard deduction (the flat amount most people can subtract from income without listing costs), so you itemize (costs like charity gifts you list one by one on your return instead of the flat amount). The bar also includes the cash deduction you give up on cash to public charities (a charity like a church, school or hospital that gets the best tax treatment for gifts). In the years between, you take the standard deduction. A donor-advised fund (a giving account at a charity that holds your gifts until you pick where they go) lets you deduct in the big year and grant over time. At 70½ or older, if you own a traditional IRA, a QCD (money sent straight from your IRA to a charity at 70½ or older, not taxed as income, up to a yearly limit) often gets a similar result.

  • Bunching (giving several years of gifts in one year so they are big enough to deduct) puts several years of planned gifts into one tax year. That year's itemized deductions clear the standard deduction. You take the standard deduction in the years between.
  • For a married couple both 65 or older in 2026, the big year has to beat $32,200 plus $1,650 per spouse. Also add the cash deduction for cash to public charities, lost in the big year and each year you skip.
  • The year often worth a look already has big deductions. It also has enough income, taxed at a real rate, to use the gift. A Roth conversion that year is sized together with the gift.
  • A donor-advised fund lets you deduct in the big year and grant over time. Gifts to one don't count toward the 2026 cash deduction for non-itemizers. A QCD can't go to one.
  • If you'd otherwise itemize every year, the new 0.5% floor (a 2026 rule: the first sliver of your charity gifts, half a percent of income, is not deductible) costs you once per bunching year instead of every year. If you wouldn't itemize at all, bunching adds a floor hit you didn't have.
Jump to a question

Bunching is a timing choice. It’s for people who give steadily every year but rarely itemize. For them, most gifts bring little or no tax break. You give the same total over several years. You just pack the giving into one year.

Two numbers run through all of it: your AGI (your total income minus a few set subtractions, the number many tax rules start from) and your taxable income (the part of your income that tax rates are actually charged on). Medicare’s IRMAA (an extra Medicare charge you pay when your income is above a set line) surcharge and your RMD (the least you must take out of a regular IRA each year once you reach a set age) come up later on.

It works because each year you get one or the other.

To deduct a gift the usual way, you must itemize on Schedule A.1 You get either your itemized deductions or the standard deduction, not both.2 Itemized deductions lower your taxable income, but not your AGI.34 So they don’t lower measures built on AGI, like the income used for IRMAA.4

If the basics of itemizing are new to you, start there.

Related video Age 59 Tax Moves to Make BEFORE You Retire · standard deduction vs. itemizing, then bunching through a DAF

What is bunching charitable deductions?

Bunching means making several years of planned gifts in one tax year. You itemize that year. You take the standard deduction in the other years. The total you give doesn’t change. The total you deduct over those years can go up. Whether it does depends on the hurdle below.

What hurdle does the big year have to clear?

In 2026, the standard deduction is $32,2005 for a married couple filing jointly and $16,1005 for a single filer. Each married spouse 65 or older adds $1,6505. A single person 65 or older adds $2,0505, unless they are a surviving spouse.

For a married couple who are both 65 or older, that’s $35,500.

Three more words show up in the next rule: property (anything you own other than cash, such as stock or a fund, not just a house), a carryover (the part of a gift too big to deduct this year, saved for up to five later years), and a supporting organization (a charity set up to help one or more specific public charities).

From 2026, if you don’t itemize, you can deduct up to $1,0006 of cash gifts, or $2,0006 on a joint return.6 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.78 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.7 It lowers your taxable income, but not your AGI.9

So in the bunching year, their itemized list has to beat both together, $37,500. Cash to a donor-advised fund or a supporting organization earns none of that second piece. So it gives none of it up. If a DAF gift is your only giving that year, the bar is just the $35,500 standard deduction.

The off years cost you something too. You get that $2,000 deduction one year at a time, for cash given during that year. So in an off year with no cash to a public charity, you lose it again. That makes the bar over all the years higher than one year’s bar.

By my math on the figures above, bunching two years sets the bar near $39,500. For three years it’s near $41,500. Below that, this couple would deduct more by giving every year. Giving a little cash in each off year keeps the deduction, as the callout below shows.

One more deduction sits outside all of this.

For 2025 through 2028, each person 65 or older by year end gets an extra $6,00010 deduction.1011 You get it whether or not you itemize.10 Married couples must file jointly, and each person needs a Social Security number on the return.11 It shrinks by $610% of modified AGI above $75,00010, or $150,00010 on a joint return.10 On a joint return, the cut comes off each spouse’s amount, so a couple who both qualify lose $120 per $1,000 over.12

The couple below is under the phase-out. So the senior deduction (an extra deduction for people 65 and older from 2025 through 2028) is the same under every option. It still lowers their taxable income, so the tax figures below count it.

Why do so many retirees fall short of the standard deduction?

Most retirees don’t have much else to itemize. The mortgage is often paid off. So gifts have to do most of the work.

Here’s a common case. A couple has $10,000 of state and local taxes and no mortgage. They give $20,000 a year. Their list comes to about $29,300 after the floor. That’s short of the $37,500 they’d get without itemizing. So their gifts get them only the cash deduction for non-itemizers. The example below uses this couple.

Pros and cons of bunching

Pros Cons
More total deductions over several years Charities get uneven gifts, unless you use a donor-advised fund
If you’d otherwise itemize every year, the floor hits once instead of every year: From 2026, itemized gifts count only above 0.5% of AGI.131415 You give more cash up front in the big year
Can be paired with a high-income year A very big gift can top the yearly cap and spill into later years: Carries forward up to five years, under the same cap.161718
Works with stock that grew in value: Its value on the day you give it, if held more than one year.192021222324 Takes planning across several tax years

How much does bunching add? A two-year example

In this example, bunching two years of gifts into one adds $9,800 of deductions over two years.

Worked example · tax year 2026Giving $20,000 a year vs. $40,000 every other year
Assumptions
  • Married filing jointly; both spouses 65 or older.
  • AGI of $140,000 in each year, below the senior deduction phaseout.
  • They want to give $20,000 a year in cash to public charities.
  • Other itemized deductions: $10,000 of state and local taxes each year, assumed fully deductible.
  • 2026 figures are used for both years for simplicity; future standard deductions will differ.
  • Both are 65 or older with AGI under $150,000, so each gets the full $6,000. It's the same in every option.

Option 1: give $20,000 each year

Step Each year
Cash gifts $20,000
Less 0.5% floor (0.5% × $140,000) −$700
Deductible gifts if itemizing $19,300
Plus state and local taxes $10,000
Itemized total $29,300
Standard deduction plus non-itemizer cash deduction $35,500 + $2,000 = $37,500
Larger of the two: standard $37,500
Two-year total $75,000

Option 2: give $40,000 in year 1, nothing in year 2

Step Year 1 Year 2
Cash gifts $40,000 $0
Less 0.5% floor −$700 —
Deductible gifts $39,300 —
Plus state and local taxes $10,000 —
Itemized total $49,300 —
Deduction taken $49,300 (itemize) $35,500 (standard)
Two-year total $84,800

Bunching adds $9,800 of deductions over two years.

What is that worth? The gap is between the two plans, not between the two years shown here. Under Option 1, taxable income is $90,500 each year. Under Option 2, it’s $78,700 in the big year and $92,500 in the off year. Each amount sits in the same 2026 bracket, 12%25. So the extra deductions are worth about $1,176 of federal tax.

A three-year bunching example

Bunching three years of gifts into one widens the gap. Two years now get the full standard deduction.

Worked example · tax year 2026$20,000 a year vs. $60,000 once every three years
Assumptions
  • Same couple and assumptions as the two-year example.
  • The year 1 gift of $60,000 is under the 60% of AGI cash limit ($84,000 at $140,000 of AGI).
  • Both get the full senior deduction every year under both plans, so it's left out of these totals.
Step Give $20,000 each year Bunch $60,000 in year 1
Year 1 deduction $37,500 (standard + cash) $60,000 − $700 floor + $10,000 state and local taxes = $69,300 (itemize)
Year 2 deduction $37,500 $35,500 (standard)
Year 3 deduction $37,500 $35,500 (standard)
Three-year total $112,500 $140,300
Difference $27,800 more with bunching

What caps a bunched gift?

Each kind of gift has its own yearly cap, set as a share of AGI. The caps also turn on the kind of charity, including a private foundation (a charity funded mostly by one person, family or company, not a public charity).

The carryforwards page lists each cap in full.

The yearly caps and the 0.5% floor are shares of your AGI, figured without any net operating loss carryback.26 So a lower AGI also lowers the caps.26

A cash gift this size rarely reaches those caps. A gift of appreciated stock (stock or fund shares now worth more than you paid for them) reaches them sooner. Anything over a cap carries forward.

How much of each gift actually lowers your tax?

One way I look at bunching is this. What share of the money given turns into deductions above what the couple would get with no gifts at all? With no gifts, they’d take the $35,500 standard deduction every year.

Pattern Total given Deductions above the no-gift baseline Share of the gift that adds to deductions
$20,000 a year for two years $40,000 $4,000 (the non-itemizer deduction, twice) 10%
$40,000 once, then skip a year $40,000 $13,800 34.5%
$20,000 a year for three years $60,000 $6,000 10%
$60,000 once, then skip two years $60,000 $33,800 56.3%

The rest of the money still reaches the charities. It just doesn’t change the tax return. The share goes up with the size of the bunched gift. That’s because the standard deduction is “used up” only once per bunching year. These figures change with each household’s other deductions.

How to start bunching, step by step

These are the steps many people follow. Each one depends on your own numbers.

  1. Add up your other itemized deductions. Think state and local taxes, mortgage interest and large medical bills. Medical bills count only above 7.5% of AGI.27 The state and local tax deduction has a yearly cap.28

  2. Find your hurdle. That’s your standard deduction, plus the cash deduction for non-itemizers you’d give up (above).

  3. Pick how many years to group. Two or three years is common. Check that the gift stays under the yearly caps above.

  4. Pick the year. See the next section.

  5. Decide how to give. You can give cash, stock, or both. A donor-advised fund can spread grants over time.

  6. Give early enough to count this year. Firms also set their own year-end cutoffs, so ask yours.

    A gift is deducted in the year you pay it.29 A mailed check counts on the day you mail it, if it clears.3031 A gift on a credit card counts in the year you make the charge.30 A stock certificate you sign over counts the day you deliver or mail it to the charity.3231 Stock sent through your own broker or the company counts only when it is moved into the charity’s name.32

  7. Keep the receipts. Two papers can matter: a charity receipt (the written receipt a charity gives you for a large gift, needed before you file) and Form 8283 (the tax form you add when you deduct gifts of things other than cash, like stock). The first one: A written charity receipt for gifts of $250 or more, in hand by the day you file.333435. The second one: Form 8283 if non-cash gifts top $500 for the year.3637383940.

  8. In the off years, look at small cash gifts. Cash given straight to a public charity can still count, up to the cap above.

Which year should you bunch into?

The year often worth a look already has large itemized deductions. It also has enough taxable income, at a real tax rate, to use the gift.

That’s how I think about it. It comes down to three questions.

  1. Which year already has deductions above the standard deduction? A year with big medical bills or high state and local taxes needs less giving to clear the bar. The gift stacks on deductions that already exist.
  2. Which year has the income to use it? A deduction is worth the tax rate on the income it offsets. Some years have extra income. It might be a large capital gain, a business sale, or a Roth conversion. It might be a withdrawal from an inherited IRA (an IRA you get from someone who died). That income is often in a higher bracket. The higher AGI also raises the caps on the gift.
  3. Which years have no benefit? Skipping years is the point. Giving a large sum one year and nothing the next is a normal, planned pattern.

These are considerations, not a formula. Whether a year fits depends on your income, your other deductions, and how your charities feel about uneven gifts. A donor-advised fund can smooth that out (see below).

How does a Roth conversion change the bunching decision?

A Roth conversion and a bunched gift in the same year share that year’s income. So many people size them together, not one at a time.

A conversion from a traditional IRA to a Roth IRA is taxed as income.41 There is no 10% early-withdrawal penalty on the conversion itself.41 Taking the converted money out of the Roth within five years can bring that penalty back.42 An exception may still apply.42 An RMD can’t be converted.43 So in a year you owe an RMD, it has to come out before you convert.43

That changes the gift’s math in several ways.

What the conversion changes Effect on the bunched gift
Raises AGI Raises the yearly caps above, so more of a large gift can be deducted that year
Raises AGI Raises the 0.5% floor, so a slightly larger slice of the gift isn’t deductible
Raises taxable income The gift may offset income taxed at a higher rate
Pushes income into the 37% bracket, counted before itemized deductions come off Itemized deductions are trimmed: From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.4445
Raises AGI for Medicare and Social Security The charitable deduction doesn’t bring AGI back down: Itemized, so it lowers taxable income but not AGI.1243

The last row is the one I see missed most often.

A bunched gift can offset the income tax on a conversion. But it doesn’t undo the conversion’s effect on AGI. That matters twice in retirement.

IRMAA uses your AGI plus tax-exempt interest.46 It generally uses the return from two years earlier, so 2026 premiums use 2024 returns.4746 Each person on Medicare whose income is above the line for their filing status pays it.48

So a conversion this year shows up in IRMAA premiums two years later.

To test whether your Social Security is taxed, add half your benefits to your other income, including tax-exempt interest.4950 That test starts from AGI, so income left out of AGI, like a QCD, doesn’t count.50 Above a base amount, up to 50% of benefits can be taxed, and up to 85% above a higher one.49

There’s also a ceiling the other way. A bunched gift can get so big that part of it stops counting this year. That part moves into a carryover: Carries forward up to five years, under the same cap.161718. The Roth conversion page works through a conversion-year example.

Can you bunch with appreciated stock?

Yes. Many people bunch with stock they’ve held more than a year that has grown in value. Generally you pay no tax on the gain.

Stock held over a year and given to a public charity is generally deducted at its value that day.19 Held one year or less, the deduction is generally the lower of what you paid or its value.20 Stock worth less than you paid is deducted at its value, and the loss isn’t deductible.21 Traded stock is valued at the average of its high and low prices that day.22 If it didn’t trade that day, you average the nearest trading days before and after.23 That method applies when those trading days fall within a reasonable period of your gift.23 That average is weighted, so the trading day closer to your gift counts for more.24

One exception: In a buyback, the gain is yours only if the charity was bound to give up the shares.51.

Watch the caps above. Stock given to a public charity is capped at 30% of AGI, not 60%. The appreciated stock guide covers which shares people tend to pick.

How does a donor-advised fund help with bunching?

A donor-advised fund lets you make the big gift, and take the deduction, in the bunching year. Then you suggest grants to your charities over the next few years. The deduction counts in the year you put money in the fund. It doesn’t wait for the fund to pay a charity.29 So your charities can keep getting steady support, even though your deductions are lumpy. See donor-advised funds.

Two limits matter for retirees:

  • No non-itemizer deduction for DAF gifts. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.6789. In the off years, the $2,000 joint deduction is there only for cash given straight to public charities.
  • No QCDs to a DAF. A public charity, not a donor-advised fund, supporting organization or most private foundations.5253

How does the 0.5% floor affect bunching?

The floor makes bunching a bit more appealing.

From 2026, if you itemize, your gifts count only above 0.5% of your AGI.13 By my reading, the floor comes off after the yearly AGI caps.14 It comes off in a set order, starting with gifts under the 20% cap and ending with cash to public charities.15

If you itemize every year, you lose that slice every year. When you bunch, you lose it once, in the year you itemize. In the off years you take the standard deduction. The floor doesn’t apply to the cash deduction for non-itemizers.7

Say you wouldn’t itemize in any year anyway. Then the floor costs you nothing today. Packing the gifts into one year adds a floor hit. The couple in the example above is in that spot. Their floor costs $700 once.

Gifts lost to the 0.5% floor carry over only from a year when gifts went over a yearly AGI cap.54 Even then, only the floor amount tied to the kind of gift that went over joins the carryover.55 Otherwise, the amount lost to the floor is gone.54

See 2026 changes.

Is bunching worth it if you can make QCDs?

Often it isn’t needed. If you’re 70½ or older and own a traditional IRA, a QCD often gets a similar tax result every year without bunching.

A QCD is left out of your income, so it never reaches your AGI.5657 Because of that, you can’t also deduct it as a charitable gift.56 If your IRA holds after-tax money, the QCD comes first from the money that would be taxed.56

So money that leaves your IRA this way usually doesn’t show up as income. By my reading, that keeps your tax down whether or not you itemize. One catch applies if you still deduct traditional IRA contributions at 70½ or older.

Deducted IRA contributions for years ending once you’re 70½ or older shrink the QCD you can leave out of income.58 It shrinks dollar for dollar, minus amounts that already shrank earlier QCDs.58

A QCD counts toward your required minimum distribution (RMD) for the year.59 Taking out more than your RMD doesn’t earn credit toward a later year’s RMD.60

A QCD isn’t a deduction. So the floor and the standard deduction hurdle don’t shrink it. That’s my reading of how the rules are written; see 2026 changes.

The QCD limit is $111,00061 per IRA owner in 2026, up from $108,00061 in 2025.6162 It is adjusted for inflation, so it can rise in some years and stay the same in others.61 The limit covers all of your QCDs for the year together, not each IRA separately.63 On a joint return, each spouse has their own limit for the IRAs they own.62

That’s well above most retirees’ giving.

Bunching can still be worth a look after 70½ in a few cases:

  • You give appreciated stock. A gift of shares is deducted differently: Its value on the day you give it, if held more than one year.192021222324. See stock vs. QCD.
  • You want a donor-advised fund. QCDs can’t go to one, so DAF giving has to come from other money.
  • You give more than the QCD limit.

Common mistakes

  • Bunching without checking the hurdle. The big year has to clear the standard deduction, plus the cash deduction you give up. A gift to a donor-advised fund or a supporting organization adds nothing to that. If the big year doesn’t clear the hurdle, bunching adds nothing. Clearing it isn’t always enough, either. The big year also has to make up the $2,000 deduction lost in each off year.
  • Ignoring the yearly caps. A bunched stock gift above 30% of AGI isn’t lost. But part of the deduction moves to later years: Carries forward up to five years, under the same cap.161718
  • Sizing the gift and a Roth conversion apart. They share one year’s income. Each one changes the other’s math.
  • Taking extra IRA withdrawals to fund a bunched gift. That raises AGI. After 70½, a QCD often does the same job: Left out of income before AGI, so it can't also be deducted.5657.
  • Expecting the non-itemizer deduction for DAF gifts. The law leaves them out: Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.6789

Sources (63)

Show

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.)

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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.

  21. 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.

  22. 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.

  23. 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.

  24. 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.

  25. 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.

  26. 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.

  27. 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.

  28. 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.

  29. 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.

  30. 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.

  31. 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.

  32. 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.

  33. 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.

  34. 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.

  35. 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.

  36. 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.

  37. 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.

  38. 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.

  39. 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.

  40. 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.

  41. 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.

  42. 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.

  43. 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.

  44. 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.

  45. 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.

  46. 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).

  47. 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.

  48. 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.

  49. 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.

  50. 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.

  51. 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).

  52. 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.

  53. 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.

  54. 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.

  55. 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.

  56. 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.

  57. 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.

  58. 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.

  59. 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.

  60. 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.

  61. 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.

  62. 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.

  63. 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.