Are qualified charitable distributions from my rmd deductable from my taxable income?

[DawnC0]

Yes, if the distribution is made directly to the charity.  If the account custodian sends the money directly to the Charity (a QCD -Qualified Charitable Distribution), it directly reduces your AGI (adjusted Gross income) as well as your taxable income. Lower AGI usually makes you more eligible for other tax benefits. The QCD comes directly off your income before taxable income is determined.

If you sent the money to the charity, not via the custodian, you can only take an itemized deduction on Schedule A.  You must have sufficient other itemized deductions that exceed your standard deduction before you get any tax benefit from a charitable donation. 

[SweetieJean]

Just be aware that some states do not recognize QCD's on the state return.

[chitowncrystal44]

what if the custodian puts code 7 normal distribution in the 1099R box?  They told me they will not specify that it is a QCD.

[readytolearn]

Does turbo tax handle this?

[AnnetteB6]

Yes, TurboTax will handle this.

When you transfer part of your IRA distribution to a charity as a Qualified Charitable Distribution (QCD), TurboTax will take your age into account and determine if you qualify to make a QCD.  After you enter the information from your Form 1099-R which reports the distribution there will be some follow-up questions.  One of those questions will be if the distribution was transferred to a qualified charitable organization.  You can choose either all, part, or none of the distribution was transferred.  This will take care of reporting the distribution correctly on your return.

Then, 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.

@readytolearn

[emeraldgreen]

I received a RMD from my IRA with a portion going directly to a Qualified Charitable Organizion.  Because the amount I (actually) received was less that the Required distribution amount, TurboTax is telling me I owe taxes on the amount that was a QCD, and is suggesting ways I may be able to get a waiver from the IRS on the additional tax. Taxes were withheld on the total amount of the RMD.  I don't understand why the additional taxes.

[macuser_22]

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@emeraldgreen wrote:

I received a RMD from my IRA with a portion going directly to a Qualified Charitable Organizion.  Because the amount I (actually) received was less that the Required distribution amount, TurboTax is telling me I owe taxes on the amount that was a QCD, and is suggesting ways I may be able to get a waiver from the IRS on the additional tax. Taxes were withheld on the total amount of the RMD.  I don't understand why the additional taxes.

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Are you saying that you failed to take the full amount of the 2019 RMD?    The amount that is a QCD is not taxable but the RMD shortfall is subject to a 50% penalty unless you take it late and then file a 5329 requesting  a waiver that TurboTax is asking.

Please provide more information.

[MJW5]

I actually had two QCD checks sent to separate churches in 2022. Can I list them separately in Turbo Tax or should I combine them into one QCD amount?

[MarilynG1]

If both QCD checks were sent from the same 1099-R distribution, enter the total amount of QCD when entering your 1099-R.  The total comes directly off your Taxable Income.

Here's more info on Reporting QCD Distributions.