If you are over age 70½ and have an amount transferred directly from an IRA to charity, the otherwise taxable amount (up to $100,000) is excluded from your taxable income as a Qualified Charitable Distribution.
The Form 1099-R from the financial institution will report a regular distribution. Nothing on this form will indicate that the distribution was transferred to charity. When entering this Form 1099-R into TurboTax, in the follow-up questions you'll need to enter the amount that was transferred to charity. TurboTax will exclude this amount from the amount reported on Form 1040 line 15b or Form 1040A line 11b and will include the notation "QCD" next to the line.
If you are over age 70½ and have an amount transferred directly from an IRA to charity, the otherwise taxable amount (up to $100,000) is excluded from your taxable income as a Qualified Charitable Distribution.
The Form 1099-R from the financial institution will report a regular distribution. Nothing on this form will indicate that the distribution was transferred to charity. When entering this Form 1099-R into TurboTax, in the follow-up questions you'll need to enter the amount that was transferred to charity. TurboTax will exclude this amount from the amount reported on Form 1040 line 15b or Form 1040A line 11b and will include the notation "QCD" next to the line.
what and where do I enter this distribution dollars on 1099-R
Yes, but it doesn't work in Turbotax. The amount donated through the Qualified Charitable Donation (QCD) still showed up as income on my AGI. And Turbotax instructed me to remove the amount of the donation off my list of donations for the year. Since the QCD was added to my income, I have to assume that it added to my taxes at the same rate as my regular income. If this is correct I do not know what possible tax advantage can be had in making a donation through the IRA disbursement rather than the regular way of writing them a check. Seems that it just adds more hassle. Can someone clarify this issue for me?
To enter a QCD from an IRA distribution that is reported on a 1099-R, follow these steps.
In the Wages & Income section
The IRA distribution is on page 1 of the 1040, but none of it is taxable if the whole amount was donated to charity.
Remember that you cannot also claim this amount as a charitable deduction.