QCD

I am using TT Deluxe 2024. I have gone through the entire data entry with significant QCD donations entered. When I get to the taxable income/tax due, ALL of my income is shown as taxable (and that includes the QCD amount). I keep getting the message that standard deduction gives us the lowest taxes. But the QCD's should reduce my taxable income before (and therefore separate from) my (our) standard deduction.

What's the deal. Why is all of my income showing as taxable?

312

Expert Alumni

Feb 16, 2025 11:16:30 AM

While entering your form 1099-R, if you have entered a birth date which makes you older than 70 1/2 in the tax year, TurboTax will ask you if any portion of your distribution was transferred to charity. Answer Yes to that question and you can then enter the amount transferred to charity.

The code in box 7 of form 1099-R must be 7 and the box IRA/SEP/SIMPLE must be checked.

TurboTax will then reduce the taxable amount by the amount transferred to charity.

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QCD