Macuser22
I appreciate your help
Assume the following:
$16,000 gross distribution from IRA
$1,000 of the distribution Fed tax sent to IRS by custodian
$5,000 was donated to qualified charities (QCD)
$10,000 of the distribution was rolled over / rolled back to IRA
So my total net distribution is $6,000 ($1,000 tax+ $5,000 QCD)
And my adjusted gross income is only $1,000 (because the $5,000 is tax free)
In TT for Mac desktop version :
Federal taxes tab > Wages and income > pension plan withdrawal 1099R:
Q: Did did you receive form 1099R? I selected Yes (if I select No it moves me to another subject)
I then proceed fill out form 1099R:
16,000 gross distribution (in boxes 1 and 2a and check tax amount not determined)
1,000 tax withheld (in box 4)
In box 7 - (7 normal distribution) and check the IRA/SEP/simple box
Next screen “did you inherit the IRA”? I select No
Next screen “what did you do with the money?”: selected “I moved the money to another or same account”
And then I select “I did a combination of rolling over converting or cashing out the money”
Then in “tell us how much of the $16,000 you moved etc.” I entered 10,000 in the first box “amount rolled over etc.
(I do have a form 5498 that shows the $10,000 rollover)
Done with 1099 and it shows a $16,000 Gross distribution
Form 1040 shows:
Box 4a “IRA distributions” $16,000
Box 4B “taxable amount” shows an “Explain’ stamp followed by “ROLLOVER” and $6,000 in column 4b
Box Column 11 shows adjusted gross income of $6,000
Line 25 B does reflect the $1000 Federal income tax withheld
So my questions are:
where do I enter the qualified charitable distribution of $5,000 so that my 2020 distribution from the IRA and my (AGI) of the $1,000 is reflected on form 1040?
Also what do I do with “Explain” stamp in box 4b?
I greatly appreciate your help.
