irasmilo:<<<<I am trying to determine what my tax burden would be if I withdrew money from an IRA for donation to charity. The amount would be about $20,000, and our gross income (married, filing jointly) is $50k. My back of the envelope calculation is as follows:- standard deduction: -$10k- income withdrawn from IRA: $20kso net effect would be an additional $10k. However, since the entire $20k would be donated to a 501(c)(3) (religious), wouldn't my overall tax burden remain the same?>>>> "There's not enough information to provide an answer."I will defer to Ira on the specifics, but I have a nit to pick.You get your standard deduction whether you withdraw from your IRA (or not). If you use the standard deduction "offset" (in your mind) a portion of the IRA withdrawal, that will expose 10k of your other usual income to to taxes, and which would not have been so exposed without the IRA withdrawal --- it is an opportunity cost issue. Regards, JAFO
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra