In 2017, I have made several substantial contributions from my IRA that constitute Qualified Charitable Deductions (QCDs).
My mutual fund company (MFC) treats these amounts as “normal distributions” and does not provide any break-out to me or the IRS of the QCD amounts. I interpret this to mean the amounts MFC reports on Form 1099, lines 1 & 2a, will be the same.
MFC’s position is that it is up to me to retain copies of checks showing payees and amounts, implicitly deal with this on audit. I posited unsuccessfully that MFC should provide this and not force me as taxpayer to bear the full burden of proof.
My question of Intuit / TurboTax / User Community, as to filing my 1040 for calendar 2017: HOW SHOULD I SHOW AMOUNTS ON MY ACTUAL RETURN?
My thinking is to show on TT Form 1099, lines 1 and 2a, the same net amount AFTER deducting QCDs. I have clear documentation showing that the QCD amounts were paid to a 501c3, not to me.
In testing this using TurboTax 2016, I get a curious result if instead I show the full normal distribution on Form 1099, line 1 and the net amount on line 2a. The calculated federal tax is way more than if I simply use the net amount after QCDs on both lines 1 and 2a. Strange!
