Don’t forget to take advantage of the Trump tax law’s Qualified Charitable Contribution (QCD). You can make contributions to your church and the missions you support, like Niños de Mexico. It allows you to take a tax credit over the standard deduction that you have as senior citizen retirees, and can reduce your federal and state taxes. You can give more and pay less in taxes!

Thank you for your interest in giving to Niños de Mexico! The following information is to share the benefits with you, of the Qualified Charitable Distribution under the Trump Tax law that went into effect last year, when the IRS standard tax deduction amount was raised greatly. People who do not have tax deductions of $26,600 per year, can take the standard deduction and still make charitable contributions that reduce your adjusted gross income through the Qualified Charitable Distribution (QCD) process:

  • You get a standard deduction of $24,000 in addition to an over-age-65 deduction of $2,600, for a total of $26,600.
  • If you do not have itemized deductions of over $26,600 and still want to give to ministries/charities.
  • If you are age 70 ½, you must take Required Minimum Distribution (RMD) out of your IRA/401K and annuity accounts. You may pay taxes on each of these distributions, (unless they are from a ROTH) as they are taxable income on line 4a of your 1040 form.
  • The Trump tax plan allows for deductions, via Qualified Charitable Distributions (QCD), over the amount of your standard deduction. You can give more to the work of the Lord, and pay less in taxes! 

QCD Steps

  • Contact your Investment Company and ask for their QCD procedures and the required forms.
  • You will be required to complete the forms (one for each charity) and instruct your investment company as to what portion/amount of your yearly distribution that you want sent to the charity and what amount or percentage is to be sent to you.
  • Also, you will need to contact each charity and inform them as to what you are doing.  This money is taken out of your retirement accounts and sent directly to Niños and other charities you support.
  • The investment company sends a check directly to your charities in the amount you request, and your name appears on the contribution statement attached to each check. The check is from the investment company, not you, so you need to assure the charity knows it is from you and how you want it applied. For example, “X” amount for a child sponsorship and the balance where needed at Niños de Mexico . 
  • Your investment company should also send you a confirmation letter that you’ll use for tax verification, stating each charity they distributed funds directly to, in your name, with the date and amount. (You must request this from every investment firm with which you work.)
  • For tax purposes, assure that once your QCD was sent to each charity, that they received it and that each charity has sent a confirmation letter with the amount. 
  • Many of you give to Kingdom work, whether or not there is a tax deduction.  However, you can benefit, along with the other charities you support, by using this method. This reduces your bottom line adjusted gross income that you pay taxes on and assures that you can continue to support charities that are important to you.