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Qualified Charitable Distributions (QCDs): The Complete Guide to the Rules

Josh Rendler, CFP®

Creator of Motion Retirement

Updated 2026-10-12 · Tax years 2025, 2026 · Figures checked October 10, 2026 · How this is checked

What is a qualified charitable distribution (QCD)?

A QCD is a gift sent straight from your IRA to an eligible charity, mainly a public charity (a charity like a church, school or hospital that gets the best tax treatment for gifts). A donor-advised fund (a giving account at a charity that holds your gifts until you pick where they go) and most private foundations (a charity funded mostly by one person, family or company, not a public charity) can't get one. That money never enters your income, so it isn't in your AGI (your total income minus a few set subtractions, the number many tax rules start from) either. Once you're 70½ or older, you can give up to $111,000 per person this way in 2026. Only money that would otherwise be taxed counts. It also counts toward your RMD (the least you must take out of a regular IRA each year once you reach a set age).

  • Your IRA firm sends the money straight to an eligible charity. It's left out of your income instead of being deducted.
  • The 2026 limit is $111,000 per person, up from $108,000 in 2025. Each spouse has a separate limit for their own IRAs.
  • A QCD counts toward your RMD. But by my reading it can't undo a taxable withdrawal you took earlier in the year.
  • A QCD never enters your AGI. So it can also change how much of your Social Security is taxed and what you pay for Medicare.
  • It has to go to an eligible charity, mainly a public charity. A donor-advised fund and most private foundations don't count. It also can't come from a 401(k).
Jump to a question

A QCD is money your IRA custodian (the bank or brokerage that holds your IRA) sends straight to an eligible charity. That money never enters your income, so it isn’t in your AGI either.

The firm that holds your IRA must pay the charity directly.12 Money paid to you first and then given away is not a QCD.1 A check your IRA firm issues to the charity still counts if you deliver it yourself.3 The IRS hasn’t said whether a check you write on an IRA checkbook counts.3

You must be at least 70½ on the day the money leaves your IRA.4

This guide is for IRA owners who are 70½ or older, or close to it, and who give to charity. It looks at one question. Is there a case for giving from your IRA instead of your checking account? For many people, there is.

Related video I Tested 4 Ways to Beat RMDs on $2M — Here's What Won

QCD rules at a glance

Every QCD has to meet these rules.

Rule What it means More
Age 70½ or older on the day the money leaves the IRA.4 Eligibility
Accounts A traditional or inherited IRA, or a SEP or SIMPLE IRA with no employer contribution that year.56 Eligibility
Taxable money only Only money that would otherwise be taxed, so not a qualified Roth withdrawal.78 Eligibility
Limit $111,000 per IRA owner in 2026 ($108,000 in 2025).91011 The QCD limit
Direct payment Paid by the IRA firm straight to the charity, never to you first.213 How to make a QCD
Who can get it A public charity, not a donor-advised fund, supporting organization or most private foundations.1213 Eligibility
Nothing back The whole gift has to count as a gift to charity Eligibility
RMD Counts toward your RMD for the year.1415 QCDs and RMDs
Tax Left out of income before AGI, so it can't also be deducted.1617 Reporting
Timing Counts in the year the IRA firm pays it.18 How to make a QCD

Two of those trip people up. One is getting nothing of value back. The other is the written receipt (the written receipt a charity gives you for a large gift, needed before you file) you have to keep.

A QCD must be a gift you could fully deduct if it weren’t a QCD.19 By my reading, a benefit you get back, like a dinner, can stop it from counting.19 A small token item doesn’t count. That holds if the charity correctly decides it isn’t worth much and says the gift is fully deductible.20 The AGI caps on deductions don’t count for this test.21 For a QCD of $25019 or more, you need the same charity receipt a deduction needs.19

Key QCD numbers: 2026 and 2025

Number 2026 2025
Yearly QCD limit, per person $111,0009 $108,0009
One-time QCD to a charity trust or gift annuity (inside the yearly limit) $55,00022 $54,00022

What is a qualified charitable distribution?

A qualified charitable distribution is money your IRA firm pays straight to an eligible charity. It is left out of your income.

Normally you’d take money out of your IRA, pay tax on it, and then give it away. A QCD skips the middle step. The charity gets the full amount. The money never shows up in your AGI.

A QCD is left out of your income, so it never reaches your AGI.1617 Because of that, you can’t also deduct it as a charitable gift.16 If your IRA holds after-tax money, the QCD comes first from the money that would be taxed.16

The gift also has to reach the right kind of charity.

A QCD must go to a public charity or one of a few special kinds of foundation.12 It can’t go to a donor-advised fund, a supporting organization, or most private foundations.12 The charity generally has to be organized in the United States or a U.S. possession.13 Being organized under U.S., state or D.C. law also counts.13

A US state, city or other government unit can count too, for gifts made only for public purposes.23

Who is eligible for a QCD?

You’re eligible if you own an IRA and you’re 70½ or older on the day of the gift. An heir with an inherited IRA (an IRA you get from someone who died) can make one too, at 70½ or older.

A QCD must come from an IRA — traditional, rollover or inherited.5 From an inherited IRA, you, the heir, must be 70½ or older.5 A Roth IRA generally can’t be used, because only money that would otherwise be taxed can be a QCD.7 A SEP or SIMPLE IRA can be used only in some years.5 It can’t if an employer puts money in for the plan year ending with or within your tax year.6 Money from your own pay put into a SIMPLE IRA counts as an employer contribution.6 A 401(k), 403(b) or other workplace plan can’t make a QCD.5

Only money that would otherwise be taxed can be a QCD.7 A qualified Roth withdrawal is already tax-free, so it can’t be one.87

The QCD age stayed at 70½ when the RMD age went up.

Required minimum distributions start at 73 if you were born from 1951 through 1958.2425 They start at 75 if you were born in 1960 or later.25 For people born in 1959, the law’s wording fits both ages, so the answer is unsettled.25

So you can make QCDs for a few years before RMDs begin. For people born in 1959, see QCDs and RMDs.

QCD eligibility shows how to find your exact 70½ date. For a quick yes or no, try the QCD eligibility checker.

What is the QCD limit for 2026?

The QCD limit is $111,0009 per IRA owner in 2026, up from $108,0009 in 2025.910 It is adjusted for inflation, so it can rise in some years and stay the same in others.9 The limit covers all of your QCDs for the year together, not each IRA separately.11 On a joint return, each spouse has their own limit for the IRAs they own.10

Anything over the limit still reaches the charity, but that part is taxed. If you itemize, you may be able to deduct it under the usual rules for a gift. See the 2026 changes.

One other thing can shrink the tax-free amount.

Deducted IRA contributions for years ending once you’re 70½ or older shrink the QCD you can leave out of income.26 It shrinks dollar for dollar, minus amounts that already shrank earlier QCDs.26

There’s also a one-time option. You can send money to a charity trust (a trust that pays you or people you name for life or a set term, then gives what is left to charity) or gift annuity (a deal where you give a charity money and it pays you a set amount for life) that pays you income. Once in a lifetime, up to $55,000 in 2026, inside the yearly QCD limit.222728

The QCD limit has the history by year. QCDs to charity trusts covers the one-time gift.

How does a QCD count toward your RMD?

A QCD counts toward your required minimum distribution (RMD) for the year.14 Taking out more than your RMD doesn’t earn credit toward a later year’s RMD.15

Say your RMD is $30,000 and you give $10,000 as a QCD. Then $20,000 more meets your RMD.

The order you do things in matters.

A QCD counts in the year the IRA firm pays it.18 The first dollars out of your IRA each year count toward your RMD.18 By my reading, a taxable withdrawal taken earlier in the year can’t be turned into a QCD later.18

So a QCD in November can’t turn a taxable withdrawal you took in March into a tax-free gift. The QCD is still tax-free on its own. It just no longer lowers the taxed part of your RMD. That’s why many retirees who give each year make their QCDs first. QCDs and RMDs covers the order.

Can my QCD be larger than my RMD?

Yes, up to the yearly limit. The RMD is the least you must take out. The limit is the most you can give tax-free.

Say your RMD is $15,000 and you want to give $40,000. All $40,000 can be a QCD. But the extra $25,000 earns no credit toward next year’s RMD. Each year’s RMD stands on its own.

You can also make a QCD before you have any RMD at all, once you’re 70½.

Is a QCD better than a charitable deduction?

For many retirees who qualify, a QCD comes out ahead of giving cash and deducting it. But not always.

A QCD keeps the money out of AGI. A deduction only helps after AGI is figured. It also only helps if your itemized deductions (costs like charity gifts you list one by one on your return instead of the flat amount) beat the standard deduction (the flat amount most people can subtract from income without listing costs). There is one small exception: Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.29303132. One word in the rule below has a narrow meaning: IRMAA (an extra Medicare charge you pay when your income is above a set line).

To deduct a gift the usual way, you must itemize on Schedule A.33 You get either your itemized deductions or the standard deduction, not both.34 Itemized deductions lower your taxable income (the part of your income that tax rates are actually charged on), but not your AGI.3536 So they don’t lower measures built on AGI, like the income used for IRMAA.36

That difference is behind most of the pluses below.

QCD from an IRA Cash gift, deducted
Who can use it IRA owners and inherited-IRA heirs 70½ and older Anyone
Effect on AGI Lowers it (the money never enters income) None
Need to itemize? No Yes, apart from Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.29303132. A gift to a donor-advised fund doesn’t qualify for it.31
Counts toward your RMD Yes No
Can go to a donor-advised fund No Yes, deductible only if you itemize
0.5% floor on itemized gifts (2026) Doesn’t apply (my reading) From 2026, itemized gifts count only above 0.5% of AGI.373839
Yearly cap $111,0009 per person 60% of your AGI if you itemize40; if you don’t, Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.29303132

You get the full benefit without itemizing

Most retirees take the standard deduction.

In 2026, the standard deduction is $32,20048 for a married couple filing jointly and $16,10048 for a single filer. Each married spouse 65 or older adds $1,65048. A single person 65 or older adds $2,05048, unless they are a surviving spouse.

If your itemized deductions don’t add up to more than that, a cash gift gets you no itemized deduction at all.

Starting in 2026, people who don’t itemize can deduct some cash gifts. Two words in the rule below have narrow meanings: property (anything you own other than cash, such as stock or a fund, not just a house) and a carryover (the part of a gift too big to deduct this year, saved for up to five later years).

From 2026, if you don’t itemize, you can deduct up to $1,00029 of cash gifts, or $2,00029 on a joint return.29 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.3031 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.30 It lowers your taxable income, but not your AGI.32

That helps smaller givers, but it has limits. A QCD isn’t capped nearly that low. It lowers AGI, not just taxable income. It has its own yearly cap, and it can’t go to a donor-advised fund either.

Lower AGI changes other parts of your return

A QCD never enters AGI. So it can help anywhere the tax code or Medicare looks at AGI:

  • Tax on Social Security. Half your benefits plus other income, including tax-exempt interest.4950 A QCD doesn’t add to that income. A taxable IRA withdrawal does.
  • Medicare’s extra charge. The income IRMAA uses is AGI plus tax-exempt interest, usually from two years earlier.515253. A QCD this year can keep you under an IRMAA line two years from now. That matters only if your income is close to a line. See QCDs and IRMAA.
  • The senior deduction (an extra deduction for people 65 and older from 2025 through 2028). An extra $6,000 per person 65 or older, 2025 through 2028, itemizing or not.545556. Keeping income out of AGI can save more of it.
  • The 3.8% tax on investment income. People with high income may owe an extra 3.8% tax on investment income. IRA withdrawals aren’t investment income, but they raise the income tested against that line.57 A QCD doesn’t.
  • The 2026 floor on charity deductions. There’s a new 0.5% floor (a 2026 rule: the first sliver of your charity gifts, half a percent of income, is not deductible). From 2026, itemized gifts count only above 0.5% of AGI.373839. A QCD isn’t a deduction, so by my reading the floor doesn’t shrink it. I haven’t found IRS text that says so directly.
  • The trim for the top bracket. From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.5859. A QCD isn’t an itemized deduction, so by my reading this doesn’t touch it.

If you’re 70½ or older, own a traditional IRA and give to charity, QCDs are usually the first thing I look at. Whether they fit depends on the cases below. If you own stock that has grown a great deal in value, it’s worth comparing a QCD with giving that stock first.

When a deduction can come out ahead

The cases where a deduction can beat a QCD are fewer:

  • Stock that has grown a great deal. You can give shares you’ve held more than a year, and generally skip the tax on the gain. Its value on the day you give it, if held more than one year.606162636465. One exception is a sale the charity was already bound to make. In a buyback, the gain is yours only if the charity was bound to give up the shares.66. That deduction is capped at a smaller share of AGI than cash is.41 If you itemize anyway, that can match or beat a QCD. See QCD vs. giving stock.
  • You want a donor-advised fund. A QCD can’t go to one. Putting several years of gifts into a fund at once has to come from other money. See DAF vs. QCD.
  • You’re under 70½. Until then, a deduction is the only way. Bunching (giving several years of gifts in one year so they are big enough to deduct) gifts into one year is one way to make it count. See bunching.

How does a QCD compare with a donor-advised fund or a charity trust?

Each one works differently. The biggest split is whether the gift lowers AGI or is a deduction you have to itemize to use.

QCD Cash or stock to a donor-advised fund One-time QCD to a charity trust or gift annuity
Lowers AGI Yes No Yes, but the payments you get later are taxed
Need to itemize No Yes No
Counts toward your RMD Yes No Yes
Pays you back No No Yes, payments to you
How often Every year Any year Once in your life
Dollar cap $111,0009 per person in 2026 A percent of AGI Once in a lifetime, up to $55,000 in 2026, inside the yearly QCD limit.222728

DAF vs. QCD and charity trusts go deeper.

Worked example: a $10,000 cash gift vs. a $10,000 QCD

Here’s the same gift both ways for a made-up couple who takes the standard deduction.

Worked example · tax year 2026Married couple, both 72, standard deduction, $10,000 gift
Assumptions
  • Married filing jointly; both spouses are 72 and have valid SSNs.
  • AGI is $120,000 if the $10,000 comes out of the IRA as a taxable withdrawal. That includes their RMD. Their other income is the same on both routes.
  • Their itemized deductions are well below the standard deduction, so they don't itemize either way.
  • The marginal federal rate is the 2026 joint-return bracket for their taxable income, shown in the table.
  • The $10,000 is part of their RMD. In the QCD route it goes straight from the IRA to the charity.
  • Both are 65 or older with modified AGI under $150,000, so each gets the full $6,000 either way.

Deductions they get either way

Item Amount
Standard deduction, married filing jointly $32,20048
Extra amount, age 65+ (spouse 1) $1,65048
Extra amount, age 65+ (spouse 2) $1,65048
Senior deduction (spouse 1) $6,00054
Senior deduction (spouse 2) $6,00054
Total $47,500

Side by side

Step Cash gift QCD
AGI $120,000 $110,000 (the $10,000 is left out)
Less deductions from the table above −$47,500 −$47,500
Less 2026 cash-gift deduction for non-itemizers (joint cap) −$2,000 $0 (a QCD can’t also be deducted)
Taxable income $70,500 $62,500
Difference in taxable income $8,000 lower
Tax rate at both taxable incomes 12%67 12%67
Tax difference ($8,000 × 12%) $960 less federal tax

The QCD route ends with $8,000 less taxable income. Both amounts sit in the same 2026 tax bracket, so the whole gap is taxed at one rate.

In 2025 there was no deduction for people who don’t itemize.68 Take that deduction out of this 2026 example, and the gap would be the full $10,000, or $1,200 at 12%. At higher incomes, where the rate is 22% or more, the same gap saves more.

AGI is also $10,000 lower with the QCD. For a couple near an IRMAA line or the senior deduction phaseout, that can matter more than the bracket math shows. For a couple nowhere near either, it doesn’t.

When might a QCD not be worth it?

A QCD may not fit if you give through a donor-advised fund, or you hold stock with big gains and you itemize. The same is true if your savings are mostly in a 401(k) or 403(b). It won’t work at all if you want the charity’s dinner or tickets, or you’re not 70½ yet. The next section says why.

Whether a QCD fits also depends on your other income, your heirs, and how you like to give.

What are the disadvantages of a QCD?

The downsides are real but fairly narrow:

  1. No donor-advised funds, supporting organizations (a charity set up to help one or more specific public charities) or most private foundations. A public charity, not a donor-advised fund, supporting organization or most private foundations.1213
  2. Nothing back. A gala dinner, event tickets or other goods tied to the gift can ruin it.
  3. Paperwork. You need the charity’s written receipt, the same one a deduction needs. A written charity receipt for gifts of $250 or more, in hand by the day you file.697071
  4. No double benefit. Left out of income before AGI, so it can't also be deducted.1617
  5. Not from a 401(k) or 403(b). Money has to be moved to an IRA first, which takes time. A traditional or inherited IRA, or a SEP or SIMPLE IRA with no employer contribution that year.56. Moving it while you still work there depends on what your plan allows.72
  6. It uses the taxed part of your IRA first. If you ever put after-tax money into your IRA, that money stays behind. That’s usually good. But a QCD won’t help you get after-tax money out.
  7. Your tax form may not flag it. Using the new QCD code is optional for 2026. So reporting it right is often up to you or your preparer, as the next section shows.
  8. A smaller IRA for your heirs. Every dollar given is a dollar they don’t inherit. That’s true of any gift. If you also plan to name charities as IRA beneficiaries, it’s worth looking at both together.

For a retiree who gives a few thousand dollars a year to a church and local charities, these rarely come up.

How does a QCD show up on your tax return?

Your IRA firm reports it on Form 1099-R (the tax form that reports money paid out of an IRA or an annuity). You claim the QCD yourself, starting on line 4a (the lines on your tax return where IRA withdrawals and QCDs are reported). If you ever made nondeductible IRA contributions, Form 8606 (the tax form that tracks money in an IRA you already paid tax on) figures the taxed part.

Your IRA firm reports a QCD on Form 1099-R as an ordinary IRA payout.73 It uses code 7 from your own IRA, or code 4 from an inherited IRA.73 For 2026 it may add code Y, but it doesn’t have to.74 Code Y pairs only with codes 4, 7 or K, and none of those is a Roth IRA code.75 On the 2025 Form 1040, put the whole payout on line 4a.76 Put only the part that isn’t a QCD on line 4b, and check box 2 on line 4c.7673 If you ever made nondeductible IRA contributions, Form 8606 figures line 4b.77

That’s how the IRS knows you made a QCD. You tell it on your return. Your 1099-R and the charity’s receipt back you up. QCD reporting has the steps.

What are common QCD mistakes to avoid?

These mistakes turn a tax-free gift into taxed income, or leave it unclaimed:

  • Taking the money yourself first. Paid by the IRA firm straight to the charity, never to you first.213
  • Taking the RMD before the QCD. The first dollars out each year count as your RMD. By my reading, a QCD later can’t undo an earlier taxable withdrawal.
  • Giving at 70 instead of 70½. The test is the date of the gift. 70½ or older on the day the money leaves the IRA.4
  • Sending a QCD to a donor-advised fund. A public charity, not a donor-advised fund, supporting organization or most private foundations.1213
  • Missing the receipt. A written charity receipt for gifts of $250 or more, in hand by the day you file.697071
  • Reporting it as fully taxed. The 1099-R may show a normal withdrawal. Your preparer needs to know about the QCD.
  • Missing the year-end cutoff. Counts in the year the IRA firm pays it.18. IRA firms need time and set their own cutoffs, so start well before late December.
  • Using a spouse’s unused limit. Each spouse’s limit covers only the IRAs they own.
  • Trying a QCD from a 401(k). It isn’t an IRA, so it can’t be done.
  • Deducting IRA contributions once you’re 70½. Those deductions shrink the tax-free part. See eligibility.

Frequently asked questions

What are the new QCD rules for 2026?

The limit went up to $111,0009. Reporting also changed:

Your IRA firm reports a QCD on Form 1099-R as an ordinary IRA payout.73 It uses code 7 from your own IRA, or code 4 from an inherited IRA.73 For 2026 it may add code Y, but it doesn’t have to.74 Code Y pairs only with codes 4, 7 or K, and none of those is a Roth IRA code.75 On the 2025 Form 1040, put the whole payout on line 4a.76 Put only the part that isn’t a QCD on line 4b, and check box 2 on line 4c.7673 If you ever made nondeductible IRA contributions, Form 8606 figures line 4b.77

And by my reading, the new 2026 limits on itemized charity deductions don’t reach a QCD, because a QCD isn’t a deduction.

Can I make a QCD to my church?

Yes, if the church is a public charity. The church can confirm its status before you give. The same rules apply as for any charity. The IRA pays the church directly, you get nothing back, and you keep the church’s written receipt.

How many QCDs can you make in a year?

As many as you like. You can give to as many eligible charities as you like, from one IRA or several. Only the total is capped.

Do I need to withhold taxes on a QCD?

No.

A QCD has no federal income tax withheld.78 Asking for a QCD counts as choosing no withholding.78

If you take the rest of your RMD as a normal withdrawal, that’s where withholding applies.

Can I give stock from my IRA as a QCD?

No QCD rule says the gift must be cash.79 Tax-form instructions even have a code for a QCD of IRA assets with no easy market value.79

But I haven’t found IRS guidance on a QCD of shares traded on the stock market. Nothing I found says how such a gift is valued, or what paperwork it needs.

In my experience, most IRA firms only process QCDs as cash.

If your IRA holds stocks or funds, the usual step is to sell inside the IRA and send the cash. How to make a QCD explains.

How do you make a QCD?

You ask your IRA firm to send the money straight to the charity. Then you keep the charity’s receipt for your tax return. In short:

  1. Check that you’re 70½ or older on the day of the gift. Then check the account: A traditional or inherited IRA, or a SEP or SIMPLE IRA with no employer contribution that year.56. Check the money too: Only money that would otherwise be taxed, so not a qualified Roth withdrawal.78.
  2. Check that the charity can receive a QCD.
  3. Ask your IRA firm how it handles QCDs. Each firm sets its own forms and steps.
  4. Make the QCD before other taxable withdrawals if you want it to cover the whole RMD.
  5. Get the charity’s written receipt.
  6. Report it on Form 1040. On the 2025 form, that’s lines 4a to 4c.

How to make a QCD has the full steps.

The QCD guide, page by page

Sources (79)

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  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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.

  21. 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.

  22. 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.

  23. 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.

  24. 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.

  25. 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.

  26. 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.

  27. 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.

  28. 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.

  29. 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.

  30. 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.

  31. 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.

  32. 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.

  33. 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.

  34. 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.

  35. 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.

  36. 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.

  37. 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.

  38. 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.

  39. 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.

  40. 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.

  41. 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.

  42. 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.

  43. 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.

  44. 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.

  45. 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.

  46. 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.

  47. 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.

  48. 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.)

  49. 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.

  50. 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.

  51. 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).

  52. 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.

  53. 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.

  54. 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.

  55. 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.

  56. 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.

  57. 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.

  58. 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.

  59. 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.

  60. 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.

  61. 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.

  62. 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.

  63. 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.

  64. 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.

  65. 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.

  66. 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).

  67. 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.

  68. 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.

  69. 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.

  70. 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.

  71. 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.

  72. 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.

  73. 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.

  74. 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.

  75. 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.

  76. 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.

  77. 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.

  78. 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.

  79. 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.