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The Protecting Americans from Tax Hikes Act of 2015, or PATH, has been passed by both the House and Senate and is expected to be signed into law by President Barack Obama. This bill provides for permanent extensions of tax benefits for individuals that have long been temporary.
The bill will end a frustrating cycle for millions of taxpayers. In the past, lawmakers have enacted popular temporary provisions, such as deductions for schoolteachers' supplies or state sales taxes, and then left taxpayers hanging until the last minute as to whether the provisions would be renewed.
•If you are 70 1/2 years or older, you can directly gift up to $100,000 of your IRA account assets, per year, to one or more charities with no taxable income.
Here's the benefit: There's no tax deduction for the donated assets, but they don't count as income, either. The lower income can help charitably minded donors avoid taxes on Social Security benefits, higher Medicare premiums, higher tax brackets, and surtaxes such as the 3.8% net investment income tax. To qualify for this break, the donation of IRA assets must be to a charity, not a donor-advised fund or grant- making foundation, and the assets must be transferred directly from the IRA custodian, such as a brokerage firm or bank, to the charity
Call your IRA plan administrator to find out how to take advantage of this law before December 31st.