Charitable Contributions & Your 2023 Taxes

The deduction of charitable contributions by non-itemizers has expired along with the enhanced deduction of itemized charitable contributions. However, considering charitable contributions for the year remains a viable tax strategy for itemizers — including bunching strategies in which charitable contributions are bunched into every other year in order to exceed the standard deduction in the year that charitable deductions are claimed.

Qualified charitable distributions from IRAs are available for taxpayers age 70 ½ or older up to $100,000 per year. This removes the distribution from adjusted gross income.

A new law change also permits a one-time distribution of up to $50,000 of the qualified charitable distribution to a dual beneficiary trust, such as a charitable remainder trust.

The annual gift tax exclusion is $17,000 for 2023.