The American Taxpayer Relief Act of 2012 extended tax-free charitable contributions from IRAs retroactively to 2012 and through 2013. Taxpayers age 70 1/2 or older can exclude from gross income otherwise taxable distributions from their IRA ("qualified charitable distributions," or QCDs) up to $100,000, that were paid directly to a qualified charity.

Qualified charitable distributions count towards satisfying any required minimum distributions (RMDs). If you file a joint return, both you and your spouse can exclude $100,000 of QCDs in 2012 and 2013. You do not get to take a charitable deduction for any QCDs.

Two special rules apply for 2012 QCDs:

1. If you received a distribution from your IRA during December 2012 you may elect to treat all or part of that distribution as a QCD if you transfer the cash to a qualified charity no later than January 31, 2013.

2. You may also elect to treat any QCD you make during January 2013 as having been made on December 31, 2012.