10 FOR HOME OFFICE AND ADVISOR USE ONLY. NOT FOR DISTRIBUTION TO THE PUBLIC.
Standard deductions Old New
Single $6,500 $15,750
Joint $13,000 $31,500
Reducing/eliminating taxable RMD
Avoidance of income tax liability
• Distribution not included on 1040 as income
• Historically, charitable gifts would be a below-the-line deduction. QCDs are above-the-line deductions
• With tax changes, only about 10% of households itemize (this would not apply if using QCD strategy)
• Keeping MAGI low may have positive effects on health care costs and investment income taxation
• Keeping MAGI low may also reduce Social Security taxability
Ordinary and Long-Term Capital & Qualified Dividend Rates
Individual Married filing jointly
Income
up to ...
Ordinary
income tax rate
Capital gains
tax rate
Income
up to ...
Ordinary
income tax rate
Capital gains
tax rate
$9,950 10%
0%
$19,900 10%
0%
$40,400
12%
$80,800
12%
$40,525
15%
$81,050
15% $86,375 22% $172,750 22%
$164,925 24% $250,000*
24%
$200,000*
32%
$329,850
18.80% $209,425
18.80%
$418,850 32%
$445,850
35%
$501,600
35% $445,850+
23.80%
$501,600+
23.80% $523,600 $628,300
$523,600+ 37% $628,300+ 37%
*Based on AGI instead of Taxible Income.
