No, a charitable contribution made through a Qualified Charitable Distribution (QCD) from an IRA generally cannot also be used to claim a Kansas tax credit. Here’s why:
1. Qualified Charitable Distribution (QCD):
- A QCD allows individuals who are 70½ or older to donate up to $100,000 per year directly from their IRA to a qualified charity without having to count the distribution as taxable income. The donation counts toward their Required Minimum Distribution (RMD).
- Because the donation is excluded from taxable income, you cannot also claim it as a deduction on your federal or state tax return.
2. Kansas Tax Credit Programs:
- Kansas offers tax credits for certain charitable donations, such as donations to organizations under programs like the Community Service Tax Credit Program (CSP) or other approved charitable initiatives.
- However, because a QCD already provides a tax benefit by excluding the donation from income, using the same donation to claim a Kansas tax credit would likely result in double-dipping, which is generally prohibited by tax rules.
Conclusion:
While you can make charitable contributions from an IRA via a QCD to reduce taxable income, you cannot also use that same donation to claim a Kansas tax credit because you have already received a tax benefit through the exclusion from income.
If you’re unsure, it’s always a good idea to consult a tax advisor or accountant for specifics regarding your situation.
Written with ChatGPT