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New Member
posted Jun 6, 2019 7:48:57 AM

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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9 Replies
Level 10
Jun 6, 2019 7:48:59 AM

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.

Level 15
Jun 6, 2019 7:49:01 AM

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.

New Member
Jun 6, 2019 7:49:02 AM

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.

Level 15
Jun 6, 2019 7:49:04 AM

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#idm139679924589776</a>

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.

Alumni
Jun 6, 2019 7:49:05 AM

(was referring to question on 403(b) which may or may not be eligible for QCD

Level 15
Jun 6, 2019 7:49:07 AM

@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.

Level 15
Jun 6, 2019 7:49:08 AM

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.)

Alumni
Jun 6, 2019 7:49:09 AM

Yup - was in wrong question - too many open windows - was dealing with 403(b)

Level 2
Feb 4, 2021 1:34:44 PM

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 ?