Because of the SECURE Act 2 years ago, I decided to bunch charitable contributions and do 3 years’ worth this fall as QCD when I turn 70½ and would have needed to take RMDs this year. Now with the CARES Act, my RMDs are not due till 2022. I have a few questions:
1. When I donate before reaching 70½ to all these organizations that need to raise money now for coronavirus causes and the total amounts to $500, for example, does the above-the-line deduction created by the CARES Act max out at $300 if I do the standard deduction (i.e., no itemizing) for my 2020 tax return?
2. If the dollar amount in 1. is deducted, can I still do a QCD when I turn 70½ for tax year 2020?
3. If I can do the QCD as in 2., I know that it won’t reduce the current year income since there is no RMD, but it will lower the balance of my traditional IRA account so that it will notably reduce RMDs starting at age 72, and therefore the taxable amount of Social Security benefits, Medicare Part B IRMAA, plus Medicare Part D IRMAA. The question is: Does reporting the QCD lower just the “taxable” IRA balance, so essentially, for the balance that is left, the basis becomes a higher percentage of the total IRA balance, thus lessening the tax on future RMDs?