dmertz
Level 15

Get your taxes done using TurboTax

Obtaining a return of contribution from Husband's IRA and instead making a contribution from Wife's IRA, eliminating the deductible contribution from Husband's IRA, would allow the $6,600 charitable contribution to be treated as a QCD.  Husband's contribution could instead be made nondeductible, allowing the $6,600 to be a QCD.

 

A return of the $7,000 contribution would be reported on the 2021 tax by entering the code P 2022 Form 1099-R that will be received near the end of January 2023.  This will trigger TurboTax to prompt you for the required explanation statement describing the return of contribution.  You'll also have to either omit Husband's the $7,000 traditional IRA contribution from TurboTax, or trigger an excess contribution by entering $7,001 as the contribution and then telling TurboTax that you had $7,001 returned.

 

Note that TurboTax the amount of deductible contributions made in or after the year you reach age 70½ does not apply just to the year in which such contribution is made, it applies to all years until the amount of taxable distributions has eaten up all of these contributions.   Only then can QCDs be made.  TurboTax does not track deductible contributions made in or after the year one reaches age 70½, you have to do that yourself and claim as a QCD only the amount that you yourself determine is permissible.

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