● Money & small business
Qualified charitable distributions in 2026: when giving from your IRA beats giving cash
A qualified charitable distribution (QCD) is money sent directly from your IRA to a charity. From age 70½ you can give up to $111,000 this way in 2026 (IRS Notice 2025-67; $108,000 in 2025). It counts toward your required minimum distribution but isn't taxable income, and it isn't deductible either. Every figure below comes from our QCD calculator, which was checked against an independent calculation.
What changed for cash gifts in 2026
- If you take the standard deduction, you can now deduct up to $1,000 of cash gifts to charity ($2,000 married filing jointly).
- If you itemize, only the part of your gifts above 0.5% of your AGI is deductible.
- Gifts to donor-advised funds don't qualify for the new deduction, and they can't receive QCDs.
If you take the standard deduction
A married couple with a $20,000 RMD, comparing a QCD with taking the RMD and giving the same amount in cash:
| Given to charity | Tax saved by a QCD at 12% | At 22% | AGI lower by |
|---|---|---|---|
| $1,000 | $0 | $0 | $1,000 |
| $2,000 | $0 | $0 | $2,000 |
| $5,000 | $360 | $660 | $5,000 |
| $8,000 | $720 | $1,320 | $8,000 |
| $20,000 | $2,160 | $3,960 | $20,000 |
Up to $2,000, the new deduction makes a cash gift just as good for income tax. Above it, every dollar given as a QCD instead of cash is a dollar less of taxable income. For a single filer the break-even is $1,000: an $8,000 QCD saves $840 at 12% and $1,540 at 22%.
If you itemize
An itemizer can deduct a cash gift, less 0.5% of AGI, so the QCD's income-tax edge is small. With $150,000 of other income, a $20,000 RMD and a 24% rate, a $5,000 or a $20,000 gift saves $204 either way: the 0.5% floor on $170,000 of AGI is $850, and $850 × 24% = $204. The bigger difference is AGI: $20,000 lower with the $20,000 QCD.
Why a lower AGI can matter more
Your AGI drives other costs that the calculator doesn't price: how much of your Social Security is taxed, Medicare Part B and D premium surcharges (IRMAA, based on income two years earlier), and deductions that phase out with income. A QCD lowers AGI whether or not you itemize.
Rules to get right
- You must be 70½ or older on the day of the distribution, even though RMDs now start at 73.
- The money must go directly from the IRA to the charity; a check made out to you doesn't count.
- Eligible charities: most public charities. Not donor-advised funds, supporting organizations or private foundations.
- QCDs come from IRAs (including inherited IRAs), not from 401(k)s or other workplace plans, and not from a SEP or SIMPLE IRA that is still receiving contributions.
- The $111,000 limit is per person, so a married couple with an IRA each can give up to $222,000.
- On your tax return, the distribution is reported but the QCD part isn't taxable: keep the charity's acknowledgment.
Work out your own numbers in the QCD calculator, and your RMD in the RMD calculator.