The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/peter-this-is-another-potential-issue-for-anybody-30701643.aspx

Subject:  Re: Charitable Contributions from an IRA Date:  5/25/2013  8:01 AM
Author:  TwoCybers Number:  72279 of 76384

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.

Gordon
Atlanta
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us