A QCD is a Qualified Charitable Distribution. When made directly from an IRA it is not considered taxable, even though it is a taxable IRA distribution as shown on form 1099-R.. The 1099-R distributions include the QCD(s); however, the QCDs (up to $100,000) are deductible from the 1099-R income for federal filings. It appears that Arkansas does. It recognize this treatment and wants all 1099-R distributions to be reported as taxable income and to take the QCDs as itemized charitable donations. I hope you better understand now.
