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posted Jun 3, 2019 5:20:12 PM

My RMD from my Ira was $1500. I contributed $8000 directy to my church. I s the entire $ 15000 taxable income

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1 Best answer
Level 15
Jun 3, 2019 5:20:14 PM

Did you mean that your RMD was $15,000 (not $1500)? If the IRA custodian paid the $8,000 directly to the church, that's called a Qualified Charitable Distribution (QCD). The $8,000 is subtracted from your taxable income. So only the remaining $7,000 is taxable, not the whole $15,000.

When you enter the Form 1099-R in TurboTax, you have to enter the full amount of the distribution. Then continue through the questions in the interview. One of them will ask you if part of the distribution was transferred to charity. That's where you will enter the amount that was paid directly to the church.

1 Replies
Level 15
Jun 3, 2019 5:20:14 PM

Did you mean that your RMD was $15,000 (not $1500)? If the IRA custodian paid the $8,000 directly to the church, that's called a Qualified Charitable Distribution (QCD). The $8,000 is subtracted from your taxable income. So only the remaining $7,000 is taxable, not the whole $15,000.

When you enter the Form 1099-R in TurboTax, you have to enter the full amount of the distribution. Then continue through the questions in the interview. One of them will ask you if part of the distribution was transferred to charity. That's where you will enter the amount that was paid directly to the church.