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Level 2
posted Mar 6, 2024 1:34:19 PM

How I correct distributions that were OCDs but get imported as taxable?

My brokerage account 1099-R has same amounts in box 1 & 2a. All funds were directly sent to charities and Box 2B is checked as "Taxable amount is not determined."

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1 Best answer
Level 15
Mar 6, 2024 4:29:31 PM

One thing be sure  you checked the little IRA box between boxes 7&8.  It will show up on the 1040 line 4b as 0 with QCD by it.

 

See the Online screen shots that employee MarilynG1 posted
https://ttlc.intuit.com/community/after-you-file/discussion/re-qcd/01/3186042#M732644

 

After you enter the 1099R keep going. One of the next screens will ask Transfer to Charity? Did you ask the Trustee to transfer all or part of this distribution of $5,000 to a qualified charitable organization?

Then do NOT enter it again under Deductions & Credits.


To qualify as a QCD, the distribution must have taken place DIRECTLY from the account trustee to the charity. It's ok for them to send you a check made out to the Charity that you then mail to the Charity. Withdrawing funds and then making your own contribution to a charity DOES NOT qualify as a QCD. If that was done, then you have a potentially taxable distribution and a potentially deductible charitable contribution.

2 Replies
Level 15
Mar 6, 2024 4:19:35 PM

When you report your 1099-R enter it as you see it on the form. The next screen will ask if any was for a qualified charitable contribution. The amount you enter will not be taxed. 

Level 15
Mar 6, 2024 4:29:31 PM

One thing be sure  you checked the little IRA box between boxes 7&8.  It will show up on the 1040 line 4b as 0 with QCD by it.

 

See the Online screen shots that employee MarilynG1 posted
https://ttlc.intuit.com/community/after-you-file/discussion/re-qcd/01/3186042#M732644

 

After you enter the 1099R keep going. One of the next screens will ask Transfer to Charity? Did you ask the Trustee to transfer all or part of this distribution of $5,000 to a qualified charitable organization?

Then do NOT enter it again under Deductions & Credits.


To qualify as a QCD, the distribution must have taken place DIRECTLY from the account trustee to the charity. It's ok for them to send you a check made out to the Charity that you then mail to the Charity. Withdrawing funds and then making your own contribution to a charity DOES NOT qualify as a QCD. If that was done, then you have a potentially taxable distribution and a potentially deductible charitable contribution.