The Wall Street Journal-20080113-Ask Dow Jones
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Ask Dow Jones
Q: I was wondering whether someone over age 70 1/2 can still make donations to charities directly from an IRA, as I have been doing for the past two years. I am hoping that Congress will continue it.
B.L., Glen Allen, Va.
A: Sorry, but the law you're asking about expired at the end of last year.
But don't give up hope. Since it was a popular law and since this is an election year, Congress might revive it and make it retroactive to the start of 2008.
Charities are lobbying hard to get this provision resurrected since it helped many of them collect additional donations.
Here's how it worked: The provision allowed someone who was age 70 1/2 or older to transfer as much as $100,000 a year directly from his or her individual retirement account to qualified charities without having to pay income taxes on the transfer. Moreover, that transfer counted toward the taxpayer's minimum required distribution for the year.
This isn't the only popular tax break that ceased to exist after Dec. 31. Another now-expired law allowed taxpayers who itemized their deductions to choose to deduct their state and local sales taxes, instead of their state and local income taxes.
Many teachers and other educators also lost a valuable break on New Year's Day. Another now-expired provision allowed a special deduction of as much as $250 a year for elementary and secondary school educators who had paid for classroom supplies out of their own pockets.
Both these provisions are available for taxpayers on their 2007 federal income-tax returns, due this year. But they won't be available for 2008 unless Congress revives them.
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