Confusing QCD vs. Charities entry

Basenji

If you have entered a 1099-R for an RMD and made QCDs from that income, where are the QCDs entered? Not talking about the entry questions when entering the 1099-R. Where does specific information for QCDs get entered?

Under the 'Walk me through everything' approach in the Deductions & Credit section, on the 'Your charities and donations' page, TT has no specific details on what source of donation should be entered. By 'source' I mean a QCD donation or a donation made from a non-RMD/1099-R source.

More details at this page identifying what should be entered at this page would be extremely helpful.

VolvoGirl

Sorry but you do enter the QCD under the 1099R entry.

After you enter form 1099-R keep going. If you have entered a birth date which makes you older than 70 1/2 there will be a page that asks Do any of these situations apply? Midway down is Were any of these funds sent directly to a charity? Then it will ask for the amount.

The code in box 7 of form 1099-R must be 7 (or new code Y) and the little IRA/SEP/SIMPLE box must be checked. A IRA QCD should be 0 taxable on 1040 line 4b and the QCD box checked. Unless you have other 1099R taxable amounts on 4b. You can’t do a QCD from a 401K.

For QCD there is a new checkbox on the 1040 line 4.

4a is the amount of the IRA distribution.

4b is the taxable amount.

4c has 3 checkboxes. Checkbox 2 is for QCD.

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VolvoGirl

And the Deductions & Credits section does not need to know about a QCD because it is not a deduction. It is not part of your taxable income in the first place.

dmertz

Specific details of a QCD are not to be included anywhere in you tax return. In the unlikely event that the IRS questions the QCD, they will ask for supporting documentation.

Confusing QCD vs. Charities entry

Deductions & credits

Deductions & credits

Deductions & credits