IRS Extension for Charitable Giving

Alumni & Giving

By: Lisa Odenbeck

File Under: alumni, giving

With tax season rapidly approaching, it is critical to be aware of new benefits available to eligible citizens. On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012. This provision allows charitable rollover from 2012 to 2013. 

What are the benefits for donors?

Under the Relief Act, donors age 701/2 or older are eligible to transfer up to $100,000 from their IRA account to qualified charities without being taxed. Donors wishing to benefit from the Act should note that:

  • Qualified charitable distributions made before February 1, 2013 may be counted retroactively for the 2012 tax year.
  • A taxpayer who took a distribution from an IRA account in December 2012 may make a contribution to a qualified charity by January 31, 2013 and treat this as a direct transfer.

Under these rules, an individual can make two charitable donations, up to $100,000 each in 2013. The first donation must be made by January 31, 2013 for the 2012 tax year, and the second between February 1 and December 31 for the 2013 tax year. 

These payments can also count towards the IRA’s required minimum distribution, meaning they will not show up on form 1040 as part of the taxpayer’s gross annual income.

What does this mean to you?

If you wish to have your donation to the Mount count retroactively under your 2012 tax return, your donation must be in by January 31, 2013. This deadline is approaching quickly, so be sure to make arrangements to donate, or visit our secure, online giving form today. 

More information

If you have any questions about these new benefits, contact: