How do I enter IRA QCD's

[jdisario]

I need to enter IRA QCD amount

[VolvoGirl · Accepted solution]

You fill out the 1099R exactly as shown. For 2025 there might be a new code Y on the 1099R for QCD. The IRS does not require financial institutions to use code Y to report QCDs yet, instead making the use of code Y optional. I got my 1099R from Vanguard for my QCD and it only had code 7 in box 7.

If you are over 70 1/2 then after you enter the 1099R keep going. In my Desktop program one of the next screens will say…Do any of these situations apply to you with a list. The 7th item is "I transferred all or part of this money directly to charity". Check that and the next screen will be either for RMD info or ask how much was transferred to Charity. Just keep going though all the screens.

For a QCD, check 1040 line 4b. It should be 0 (unless you have other taxable 1099Rs) and the QCD box checked. The code in box 7 of form 1099-R must be 7 and the box IRA/SEP/SIMPLE must be checked. You can’t do a QCD from a 401K.

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. Check lines 4b & 5b for any taxable amounts.

Then do NOT enter it again under Deductions & Credits. It only goes on the 1099R entry.

Enter a 1099R under
Federal Taxes
Wages & Income
Then scroll way down to Retirement Plans and Social Security
Then IRA, 401(k), Pension Plan Withdrawals (1099-R) – Click Start
If you are adding another 1099R there might be a Add button at the bottom of the list.