Pablo made a $5,000 IRA distribution to charity. How much can he claim as a charitable contribution deduction?

When making a distribution from an Individual Retirement Account (IRA) directly to a charity, there are specific tax implications to consider. In the case of charitable contributions made directly from an IRA, known as Qualified Charitable Distributions (QCDs), individuals over the age of 70½ can contribute up to $100,000 from their traditional IRA to a qualified charity without having to recognize the distribution as taxable income.

However, it's important to note that when distributing from an IRA directly to charity, the amount does not qualify as a charitable contribution deduction on the individual's tax return. This is because contributions deducted under IRS rules must come from personal cash or property, not from tax-deferred accounts like IRAs. Since the distribution to charity does not meet the criteria for being deducted due to the nature of being an IRA distribution rather than an out-of-pocket contribution, it results in a charitable contribution deduction of $0.

In summary, while the $5,000 distribution to charity can fulfill the requirement of a QCD and help lower the taxable income for the year, it does not allow for a charitable contribution deduction on the tax return.