2009 Treatment of IRA Distributions Donated to Charity

The Emergency Economic Stabilization Act of 2008 (federal Public Law 110-343) extended for 2008 and 2009 the federal provision that provides that individuals aged 70 1/2 or older can distribute up to $100,000 of their IRA balance to charitable organizations without recognizing income and without taking a charitable deduction.

This provision of P.L. 110-343 has not been adopted for Wisconsin tax purposes. When filing their 2009 Wisconsin income tax returns, taxpayers who donated an IRA distribution to charity must complete 2009 Wisconsin Schedule I to include the IRA distribution in Wisconsin income. To calculate the Wisconsin itemized deduction credit, use the amount of charitable deduction that would have been allowed on federal Schedule A without considering P.L. 110-343.

September 14, 2009