I entered a portion of my RMD to charity. However, it was not deducted from my IRA plan withdrawals and gross income. Why wasn't it deducted?
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I entered a portion of my RMD to charity. However, it was not deducted from my IRA plan withdrawals and gross income. Why wasn't it deducted?

 
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Level 15

I entered a portion of my RMD to charity. However, it was not deducted from my IRA plan withdrawals and gross income. Why wasn't it deducted?

Did the plan administrator do a Qualified Charitable Distribution directly to the charity?  If so, there is a question that covers that after you enter the 1099-R.  The gross amount will not change, but the taxable figure will be shown on Form 1040 with the letters QCD next to it,

Or did you make a charitable contribution yourself from the proceeds you received?

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Level 15

I entered a portion of my RMD to charity. However, it was not deducted from my IRA plan withdrawals and gross income. Why wasn't it deducted?

Qualified charitable distributions.

A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.

If you are 70 1/2 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.

The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.

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 left side) 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.]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Highlighted
Level 15

I entered a portion of my RMD to charity. However, it was not deducted from my IRA plan withdrawals and gross income. Why wasn't it deducted?

Just be aware that some states do not recognize QCD's, so you may still owe state taxes.
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