QCDs

Forum|Forum|8 months ago
October 22, 2025
2 replies
8 views

At 70-1/2 I started uring my traditional IRA to make a QCD. How will this affect my tax bill? since I don't have to claim it as income will it have no impact?

Ask the Experts - Navigating - Oct 2025

KarenL

Employee Tax Expert

It's actually a reduction of taxable income. You still report it as you will receive a 1099-R, but then it's excluded (if the qualifications are met, and it's below the limit) and will reduce your Adjusted Gross Income.
This link on What is a Qualified Charitable Contribution has great info to help as well.

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VolvoGirl

Level 15

I've been taking QCD from my IRA when I turned 70 1/2. I get a 1099R for it. After I enter the 1099R Turbo Tax asks me if I made any QCD. Check yes and enter the amount. It will be excluded on 1040 line 4b with the letters QCD by it. Next year in 2026 I will have to start taking my RMD. You can apply a QCD to the RMD so the RMD won't be taxed.

For 2025 you will get a normal 1099R that has a new code Y. See post
https://ttlc.intuit.com/community/retirement/discussion/re-for-2025-the-irs-is-introducing-a-new-code-y-for-qcds/01/3680111

And see 2025 draft 1099R list of codes
https://www.irs.gov/pub/irs-dft/f1099r--dft.pdf