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I gave an IRA Cash withdrawal (RMD) to a charity where is it shown ?

I ask the Bank to make a check payable to a charity for the required RMD. Where do I enter it in Turbo Tax

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5 Replies
JulieH1
New Member

I gave an IRA Cash withdrawal (RMD) to a charity where is it shown ?

If you do make a Qualified Charitable Distribution, it doesn't matter whether it's your RMD or an additional IRA distribution

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.

You need to transfer the money directly from the IRA to the charity for it to count as the tax-free transfer. Ask your IRA administrator and the charity about making a direct transfer, or you can have the IRA administrator send a check from your account to the charity. 

If you make a tax-free transfer from your IRA to charity, you can’t also deduct that money as a charitable contribution. But the tax-free transfer could give you extra benefits. You don’t need to itemize your deductions to get a tax benefit from the gift (and many people who no longer have a mortgage don’t itemize their deductions). Making the tax-free transfer also keeps the money out of your adjusted gross income. That could help you avoid the Medicare high-income surcharge, which boosts your Part B and Part D premiums if your AGI is more than $85,000 if single or $170,000 if married filing jointly. Keeping the money out of your AGI could also make less of your Social Security benefits taxable.

dmahanfl
New Member

I gave an IRA Cash withdrawal (RMD) to a charity where is it shown ?

Where do I find the TurboTax form requesting the amount of the IRA distribution that qualifies as a QCD?

 

BillM223
Expert Alumni

I gave an IRA Cash withdrawal (RMD) to a charity where is it shown ?

Please read JulieH1's answer carefully.

 

If the money went straight from the IRA custodian to the charity AND you were at least 70 1/2 last year, then after you enter the 1099-R that the distribution was reported on, TurboTax will ask you if any of the money was a QCD.

 

Otherwise you report it as a regular contribution on Schedule A/Itemized Deductions and it is not a QCD.

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I gave an IRA Cash withdrawal (RMD) to a charity where is it shown ?

I did everything you said to do but on page one of my return on line 4b on page one my return  the total amount of my IRA gifts to charity does not appear.

 

T I have an error which says that I underfunded  my Required distribution and I have a significant penalty to pay.

 

The program is not entering my information correctly,

HopeS
Expert Alumni

I gave an IRA Cash withdrawal (RMD) to a charity where is it shown ?

To report a qualified charitable distribution on your Form 1040 tax return, you'll use the 1099-R (even though there's no indication that it was a QCD). Enter the info as a 1099-R and you'll be asked in one of the follow-up questions if it was a Qualified Charitable Distribution.

 

On your actual Form 1040, line 4a will include the amount of your distribution, and line 4b will show any taxable amount ($0 if the entire distribution was transferred to the charitable organization), and the designation QCD will be shown on that line as well.

 

When navigating the steps below you will see this question:

 

 

 

Use the following steps to get started entering your Form 1099-R that reports the distribution from your IRA:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-R” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-R
  • Click on the blue “Jump to 1099-R” link

 

Qualified Charitable Distribution

 

@don  

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