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intyigbil
New Member

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

 
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maglib
Level 10

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

The Form 1099-R will report a regular distribution regardless of a QCD.  The financial institutions normally does not indicate that the distribution was transferred to charity.  When entering this Form 1099-R into Turbotax, there will be questions related to the amount donated directly to charity.  Turbotax will exclude this amount from Form 1040 line 15b or Form 1040A line 11b and will include the notation "QCD" next to the line.

You must be over age 70.5 and the amount must be directly donated to the charity from the financial instituion. The amount qualifies as meeting RMD yet will reduce the taxable amount of the IRA distribution.

Once entered via the 1099-R interview you don't report the amount as charitable contributions as the income won't be reportable and that would be double dipping.

QCD has no impact on the 1099-R reporting.

I hope this was helpful.

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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9 Replies
maglib
Level 10

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

The Form 1099-R will report a regular distribution regardless of a QCD.  The financial institutions normally does not indicate that the distribution was transferred to charity.  When entering this Form 1099-R into Turbotax, there will be questions related to the amount donated directly to charity.  Turbotax will exclude this amount from Form 1040 line 15b or Form 1040A line 11b and will include the notation "QCD" next to the line.

You must be over age 70.5 and the amount must be directly donated to the charity from the financial instituion. The amount qualifies as meeting RMD yet will reduce the taxable amount of the IRA distribution.

Once entered via the 1099-R interview you don't report the amount as charitable contributions as the income won't be reportable and that would be double dipping.

QCD has no impact on the 1099-R reporting.

I hope this was helpful.

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
dmertz
Level 15

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

For any code 7 distribution from a traditional IRA, the amount shown by the payer in box 2a is required to be the same as the amount in box 1 and box 2b Taxable amount not determined is required to be marked.  A QCD is indicated on your tax return when you answer TurboTax question that some or all of the distribution was transferred to charity.  The gross amount from box 1 of the Form 1099-R will be included on Form 1040 line 15a or Form 1040A line 11a but the QCD amount will be excluded from the amount on line 15b or 11b.  The notation "QCD" will appear next to the line.
intyigbil
New Member

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

It looks like conflicting information if both 2a, and 2b show up a number and "x" mark respectively. If the 2b is marked, then 2a should be bland in this case.
dmertz
Level 15

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

What I described is what is required by the IRS.
See the Instructions for Form 1099-R and 5498:  <a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i1099r#idm139679924589776">https://www.irs.gov/instructions/i1099r#...>

The box 1 amount being replicated in box 2a is meant to suggest that in most cases the entire distribution is taxable.  In the case of a QCD, that's not the case, so what maglib described is what is required for reporting a QCD in TurboTax to make the QCD amount nontaxable.
ScruffyCurmudgeon
Level 7

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

(was referring to question on 403(b) which may or may not be eligible for QCD
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
macuser_22
Level 15

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

@Scruffy_Curmudgeon - A code Q is a qualified distribution from a Roth IRA and has nothing to do with a QCD.

Code Q means the account owner is 59 1/2 and has met the 5 year rule.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
dmertz
Level 15

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

Because code Q reports a qualified distribution from a Roth IRA, a code Q cannot be a QCD because it is not otherwise taxable.  It rare that any distribution from a Roth IRA would qualify as a QCD.

There is no code for the IRA custodian to use to indicate a QCD.  The IRA custodian transferring the money directly to charity is only one of several requirements that must be met for the distribution to be a QCD.

(I think Scruffy_Curmudgeon also replied to the wrong thread since it is a different thread that mentions a 403(b), but my reply would be the same.)
ScruffyCurmudgeon
Level 7

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

Yup - was in wrong question - too many open windows - was dealing with 403(b)
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
djrich49
New Member

For an IRA distribution for a Qualified Charitable organization what should be expected for box 2a and box 2b on the Form 1099-R?

When I entered the 1099R informations for the distrubution there was NO question about any of it being a charitable contribution.  If this was so for 2018 taxes it did not happen for 2020 taxes.  So should I subtract the QCD from the taxable amount ?

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