The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Charitable Contributions from an IRA||Date: 5/25/2013 8:01 AM|
|Author: TwoCybers||Number: 72279 of 77550|
Peter this is another potential issue for anybody on Medicare. I say potential because I have had two different tax pros give two different answers.
Funds from an IRA whether to the IRA's owner or sent directly to the charity, will result in a 1099.
Tax pro #1 says funds get entered normally which result in raising the AGI by the amount of to donation. The funds are listed as a deduction, but this does not change the AGI. If AGI increases enough, the MAGI will result in higher Medicare Part B and Part D premiums.
Tax pro #2 say do not enter the 1099 information as income on the forms since the funds never entered the hands of the IRA owner.
I really don't care what the correct situation is, but I just don't want people reading this to suddenly be surprised in the event Tax Pro #1 is right.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|