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How do I get the correct amount on line 7 of Form 8606 if I made a QCD from an IRA in which I had basis and also received RMD that year?

The Trustee of my IRA shows Form 1099-R, line 2a the same as line 1.  Will reducing line 2a by the amount of the QCD be reflected on line 7 of Form 8606?  Any other solutions?
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2 Replies
dmertz
Level 15

How do I get the correct amount on line 7 of Form 8606 if I made a QCD from an IRA in which I had basis and also received RMD that year?

Enter the Form 1099-R as received.  TurboTax will ask the amount that was contributed to charity and will automatically exclude this QCD from Form 8606 entirely.  TurboTax will also exclude the QCD from the taxable amount on Form 1040 line 4b.

How do I get the correct amount on line 7 of Form 8606 if I made a QCD from an IRA in which I had basis and also received RMD that year?

Unfortunately, I couldn't get TurboTax to ask me any questions.

Nevertheless, I found the answer, which is on the Form 1099-R.  About 1/3 of the way down the form, the amount of the QCD can be entered.  It will be reflected on Form 8606 line 7.

 

 

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