Deductions to a charitable organization from a required RMD account...is this both not counted as income and still able to deduct as a contrbution

[DDollar · Accepted solution]

No. A direct transfer of funds from your IRA custodian, payable to a qualified charity is referred to as a Qualified Charitable Distribution (QCD).  QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year, as long as certain rules are met.  While the QCD amount is not taxed, you may not then claim the distribution as a charitable tax deduction.

Here are the requirements for making QCDs:

• You must be 70½ or older to be eligible to make a QCD.
• QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
• The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
• For a QCD to count towards your current year's RMD, the funds must come out of your IRA by your RMD deadline, generally December 31.
• Any amount donated above your RMD does not count toward satisfying a future year's RMD.
• Funds distributed directly to you, the IRA owner, and which you then give to charity do not qualify as a QCD.

[SweetieJean]

Just be aware that some states do not recognize QCD's, so you may owe state taxes.

[azowenverizon]

It was widely reported that the RMD could be counted as a reduction in income if the RMD was contributed to a 5019(c)3 organization.  How do I report it?

[azowenverizon]

How and where is a QCD entered on the tax forms?

[Critter-3]

Enter the 1099-R and then complete the rest of the interview in that section to indicate the QCD amount. 

[JamesG1]

Follow these steps to report Qualified Charitable Distribution from RMD reported on an IRS form 1099-R:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen click on Wages & income.
• Scroll down to Retirement Plans and Social Security.  Click Show more.
• Click Start / Revisit to the right of IRA 401K Pension Plan Withdrawals.
• At the screen Did you get a 1099-R, click Yes.
• Enter the 1099-R information
• At the screen Where is your distribution from?, select Other distribution.
• At the screen Do any of these situations apply to you?, select I transferred all or part of this money directly to charity.

See also this TurboTax Help.

@azowenverizon