Tax-free IRA distributions to charities for taxpayers age 701⁄2 or older are retroactively extended through 2011.

This is an incredible tax break for those who qualify. If the distributions are made directly to qualified charitable organizations and do not exceed $100,000 per year, the amounts are not included in the taxable income of the IRA owner. Since the charitable distributions are not included in adjusted gross income, the taxpayer does not suffer phase-outs of deductions or the inclusion of larger amounts of Social Security due to the distribution amount. Even better is the fact that amounts distributed from the IRA directly to charities qualify in meeting the required minimum distribution rules. There is still time for taxpayers to send contributions directly from their IRAs to their favorite charities before 2010 ends in less than a week.

Since the charitable distributions are not included in adjusted gross income, the taxpayer does not suffer phase-outs of deductions or the inclusion of larger amounts of Social Security due to the distribution amount. Even better is the fact that amounts distributed from the IRA directly to charities qualify in meeting the required minimum distribution rules. There is still time for taxpayers to send contributions directly from their IRAs to their favorite charities before 2010 ends in less than a week.