Entering "QCD" on Form 1040 when e-filing

[Rocket J Squirrel]

IRS instructions say to enter “QCD” next to line 4b. Obviously this can't be done when e-filing. If I create an Explanation Statement for line 4b in the 1040 worksheet, will that explanation get transmitted to the IRS and state tax agency?

[DoninGA · Accepted solution]

You have to be at least age 70 1/2 for the QCD reported on the tax return and the distribution was from an IRA.

Assuming you are using the TurboTax desktop editions, click on Forms.  When in Forms mode open the Form 1099-R.  Scroll down the form until you are in the Qualified Charitable Distribution section.  Enter the QCD amount.  This will enter QCD on the Form 1040 Line 4b.

[Rocket J Squirrel]

Thanks. Interesting how this forum asks for my TT edition (desktop Premier) but does not display it along with the question.

[dmertz]

In step-by-step mode, if the birthdate that you enter for yourself (or for your spouse if it's your spouse's QCD) into TurboTax indicates that you were age 70½ or over during the tax year and you enter a Form 1099-R with code 7 in box 7 and the IRA/SEP/SIMPLE box marked, TurboTax will ask if you had any of the distribution transferred to charity.  Entering a nonzero amount will result in TurboTax including the QCD notation next to line 4b on Form 1040.  No explanation should be needed.

[Rocket J Squirrel]

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@dmertz wrote:

you were age 70½ or over during the tax year and you enter a Form 1099-R with code 7 in box 7 and the IRA/SEP/SIMPLE box marked, TurboTax will ask if you had any of the distribution transferred to charity

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I haven't actually run through this scenario yet in TT but will for tax year 2024. Just thinking ahead before I actually turn 70½ (which is approaching much too soon). My box 7 has code 4 (Death) because it's an inherited IRA from which I have been obliged to take RMDs for years. Will code 4 still trigger the question?

[SusanY1]

The question will not be triggered in 2024 if you weren't 70 1/2 in 2023.  While a taxpayer under age 70 1/2 can sometimes have RMD requirements they aren't eligible to make Qualified Charitable Contributions (QCDs).  

Inherited IRAs are eligible, but the account owner must be over the age of 70 1/2 to make the QCD.  
 

More information is available on that topic HERE.
 

[VolvoGirl]

@SusanY1   I think he means for his 2024 return he files in 2025.  He will be 70 1/2 in 2024.  

[dmertz]

Code 4 will trigger the question if you are age 70½ or over during the tax year.  The age of the decedent is not a factor.

[Rocket J Squirrel]

I'll be 70½ before the end of 2023. Sigh.