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You’re able to send a check or cash by mail. Please address the envelope to United Way of Skagit County, PO Box 451, Burlington, WA 98233
IRA Charitable Rollover
Since 2015, there has been a IRS provision called Qualified Charitable Distribution. This allows anyone aged 70.5 or older to donate money from their IRA account directly to a charitable organization without that gift counting as “income”. Learn more about this option below.
With two of our largest programs (Welcome Baby and the Diaper Bank) both being services that provide essentials to directly to families, we are always looking for donations of diapers, wipes, and other infant necessities. Contact us if you’re interested in donating supplies!
QUALIFIED CHARITABLE DISTRIBUTION
What is a qualified charitable distribution?
Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity. See Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) for additional information.
Can a qualified charitable distribution satisfy my required minimum distribution from an IRA?
Yes, your qualified charitable distributions can satisfy all or part the amount of your required minimum distribution from your IRA. For example, if your 2018 required minimum distribution was $10,000, and you made a $5,000 qualified charitable distribution for 2018, you would have had to only withdraw another $5,000 to satisfy your 2018 total required minimum distribution of $10,000.
How are qualified charitable distributions reported on Form 1099-R?
Charitable distributions are reported on Form 1099-R for the calendar year the distribution is made.
How do I report a qualified charitable distribution on my income tax return?
To report a qualified charitable distribution on your Form 1040 tax return, you generally report the full amount of the charitable distribution on the line for IRA distributions. On the line for the taxable amount, enter zero if the full amount was a qualified charitable distribution. Enter “QCD” next to this line. See the Form 1040 instructions for additional information. You must also file Form 8606, Nondeductible IRAs, if: you made the qualified charitable distribution from a traditional IRA in which you had basis and received a distribution from the IRA during the same year, other than the qualified charitable distribution; or the qualified charitable distribution was made from a Roth IRA.
Thank you for looking into this option! We suggest contacting a personal financial advisor or accountant if you have specific questions regarding this form of donation.