How does TT handle RMD that was made directly to charity when the paying company wants to put distribution code 7 on 1099R?

 
Anonymous
Not applicable

Retirement tax questions

code 7  is correct

within the 1099-R input that is a place to enter qualified charitable distribution.  

in the interview process when you get to the 1099-R section, you should be asked a question about this.

 

 

qcd will appear on line 4b of 1040

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dmertz
Level 15

Retirement tax questions

Since you are only permitted to make a QCD if you have reached age 70½, TurboTax will only ask about having the distribution paid to a charity if your date of birth entered into 2018 TurboTax indicates that you were age 70½ or over in 2018.  Also, TurboTax will only ask about this if the distribution is from an IRA.  RMDs from other types of accounts (IRA/SEP/SIMPLE box not marked) are not eligible for QCD treatment.

Retirement tax questions

What do I enter on that line ?  Which one is for QCD? The company is sending me copies of the checks

made out to the charities and I will also get acknowledgement from each of the 2 charities.

Retirement tax questions

Of course I am over 70!  and then?

dmertz
Level 15

Retirement tax questions

On the Transfer to Charity? page, indicate that either all or part of the amount reported on the code 7 Form 1099-R with the IRA/SEP/SIMPLE box marked was transferred to charity, then, if you indicated that only part was transferred to charity, enter the total of the amount shown on the checks that were made out to and that you forwarded to the charities.