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Level 1
June 4, 2019
Solved

My RMD from my Ira was $1500. I contributed $8000 directy to my church. I s the entire $ 15000 taxable income

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rjs
rjsAnswer
Level 15
June 4, 2019

Did you mean that your RMD was $15,000 (not $1500)? If the IRA custodian paid the $8,000 directly to the church, that's called a Qualified Charitable Distribution (QCD). The $8,000 is subtracted from your taxable income. So only the remaining $7,000 is taxable, not the whole $15,000.

When you enter the Form 1099-R in TurboTax, you have to enter the full amount of the distribution. Then continue through the questions in the interview. One of them will ask you if part of the distribution was transferred to charity. That's where you will enter the amount that was paid directly to the church.

1 reply

rjs
Level 15
rjsLevel 15Answer
Level 15
June 4, 2019

Did you mean that your RMD was $15,000 (not $1500)? If the IRA custodian paid the $8,000 directly to the church, that's called a Qualified Charitable Distribution (QCD). The $8,000 is subtracted from your taxable income. So only the remaining $7,000 is taxable, not the whole $15,000.

When you enter the Form 1099-R in TurboTax, you have to enter the full amount of the distribution. Then continue through the questions in the interview. One of them will ask you if part of the distribution was transferred to charity. That's where you will enter the amount that was paid directly to the church.