@Paul Cox wrote:
The concept of how to enter a IRA Qualified Charitable Donation into my taxes during the interview process is a good one. TurboTax, on the other hand, does not include any such question in its program. So, now my IRAs annual distribution has been tacked onto my gross income, even though it was sent directly to a 501c3 charity. Interesting that you have very clear instructions from your tax experts, but the program does not comport with those instructions. I guess I will have to file a revised return.
If you are over the age of 70 1/2 then it DOES ask the question.
Qualified charitable distributions.
A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.
If you are 72 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.
If you are 70 1/2 or older, it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.
In the online version the Charitable Donation question is on the "Do any of these situations apply to you?" screen.
The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
