QCD check written in December 2022, but not mailed to recipient until January 2023

Forum|Forum|3 years ago
January 25, 2023
9 replies
45 views

I have previously written check to charities on 12-31 and claimed them on that year's income taxes, even though they were not received by the charity until January of the next year.

Does this also apply to QCD checks written before the end of the year, but not received by me or mailed to the charity until January?

Thanks

Bsch4477

Level 15

Since the funds left your account before the end of the year I would think that they are deductible that year.

BillM223

Level 15

QCDs must be transferred directly from your IRA trustee to the charity, not by means of a check that passes through you. See this IRS page.

Or are you asking about something other than a QCD?

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Bsch4477

Level 15

@BillM223 Vanguard sends the charitable donation check made out to the Vanguard client who then gives the check to the charitable organization. I guess the fact that the check comes from Vanguard made out to the organization satisfies the requirement for direct transfer.

dmertz

Level 15

[See my follow-up post below this one.]

This cannot be treated as a QCD for 2022. To be a QCD for 2022 it must otherwise qualify to be treated as a charitable contribution for 2022. Because is was not delivered to the charity before the end of 2022, it cannot be treated as a charitable contribution for 2022. See When To Deduct in IRS Pub 526: https://www.irs.gov/publications/p526#en_US_2021_publink1000229790

If this is an IRA with check-writing privileges and you wrote the check, this will not be a 2022 QCD but will instead be a 2023 QCD. The IRA custodian will treat it as a 2023 distribution because the check will be processed in 2023.

If the check was produced by your IRA custodian, payable to the charity, given to you to be forwarded to the charity and reported on a 2022 Form 1099-R, it's not a QCD for either 2022 or for 2023. It would instead be a non-QCD distribution and a regular charitable donation reportable on your 2023 tax return.

dmertz

Level 15

I'm reconsidering my assertion that the distribution cannot be a 2022 QCD if a check prepared by the custodian was not sent to the charity before the end of 2022. Section 408(d)(8)(C) says that the contribution must otherwise be deductible, but it doesn't specify that the the deduction would have to be eligible to be reported on the tax return for the same year as the year for which the distribution occurred. Under these circumstances, it's probably reasonable to treat the distribution reported on a 2022 Form 1099-R as a QCD.