How to deduct excess amnt paid to charity from IRA over RMD? i.e. Total paid directly to charity from IRA=$50,000. RMD=$48,000. Excess=$2,000 How to deduct?

[SweetieJean · Accepted solution]

It will be taken care of when you enter the 1099-R. It not deducted....just never claimed as income.

[macuser_22]

When you enter the QCD amount, enter the entire $50K.   You can always give more (or less) than the RMD up to $100,000 in a year.  The only requirement is that it comes from an IRA and your age is over 70 1/2.

[SweetieJean]

Just be aware that some states do not have a QCD provision, so you might owe States taxes on the $50k. (One of my family members was caught by surprise on this.)

[0422rick]

But I should be able to get a deduction for the amount given to charity in excess of the RMD in this example $2,000.  So how do I show it?  How do I use TurboTax to reflect it?

[macuser_22]

Enter a 1099-R  here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type:  Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE:  When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases.  You can always return as shown above.]

A followup question will ask about your RMD and then if you had a QCD (if oiur age is over 70 1/2 and the IRA/SEP/SIMPLE box is checked on your 1099-R.   Enter the $50K amount as the QCD.   That will place the entire $50K on line 15a on the 1040 form (line 11a on 1040A) with "QCD" next to it and zero taxable amount on line 15b.

A QCD is NOT a deduction on schedule A, it is not taxable income at all, so it does not add to your AGI which is much better than a itemized deduction.

[0422rick]

OK I think I understand now.  For the $2,000 to be deductible it would also have be included as income as it was an IRA distribution.  Therefore no reason to try and deduct it.  Right?

[SweetieJean]

Right!

[macuser_22]

You are confusing a RMD (Required *Minimum* Distribution) with a QCD.   One is not dependent on the other.  The only relationship is you must be 70 1/2 which requires a RMD, but *any* distribution from a Traditional IRA, up to $100,000, can be a QCD.