- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
The Form 1099-R will report a regular distribution regardless of a QCD. The financial institutions normally does not indicate that the distribution was transferred to charity. When entering this Form 1099-R into Turbotax, there will be questions related to the amount donated directly to charity. Turbotax will exclude this amount from Form 1040 line 15b or Form 1040A line 11b and will include the notation "QCD" next to the line.
You must be over age 70.5 and the amount must be directly donated to the charity from the financial instituion. The amount qualifies as meeting RMD yet will reduce the taxable amount of the IRA distribution.
Once entered via the 1099-R interview you don't report the amount as charitable contributions as the income won't be reportable and that would be double dipping.
QCD has no impact on the 1099-R reporting.
I hope this was helpful.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
See the Instructions for Form 1099-R and 5498: <a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1099r#idm139679924589776">https://www.irs.gov/instructions/i1099r#...>
The box 1 amount being replicated in box 2a is meant to suggest that in most cases the entire distribution is taxable. In the case of a QCD, that's not the case, so what maglib described is what is required for reporting a QCD in TurboTax to make the QCD amount nontaxable.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3
- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Code Q means the account owner is 59 1/2 and has met the 5 year rule.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
There is no code for the IRA custodian to use to indicate a QCD. The IRA custodian transferring the money directly to charity is only one of several requirements that must be met for the distribution to be a QCD.
(I think Scruffy_Curmudgeon also replied to the wrong thread since it is a different thread that mentions a 403(b), but my reply would be the same.)
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3
- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
When I entered the 1099R informations for the distrubution there was NO question about any of it being a charitable contribution. If this was so for 2018 taxes it did not happen for 2020 taxes. So should I subtract the QCD from the taxable amount ?