required minimal distribution and QCD

[kwaz67]

First part.

Father in law passed away. Doing his taxes and he was 78. Required IRA with draw of $28,000. He last February had three QCD done. Two for charity's $5,000 each returning nice laid out letters and a third of stock to his high school valued on transfer of $9,000. Total of $19,000 QCD from what I read. He withdrew $30,000 from the IRA total to accomplish the above. From what I read the taxable distribution will be $11,000 and the QCD $19,000.

Second

In doing his taxes reviewing last years similarly he withdrew $30,000 but claimed it all as taxable income. If I'm correct than I should look into refiling last years taxes. Which is probably a little complicated after someone has passed.

[ColeenD3]

A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. Was a direct transfer madeor did he take the distribution and donate the money? If he took the distribution, it is a charitable donation on Schedule A.

QCDs can be counted toward satisfying your minimum required distributions (MRDs) for the year, as long as certain rules are met.If you are over age 70½ and have an amount transferred directly from an IRA to charity, the otherwise taxable amount (up to $100,000) is excluded from your taxable income as a Qualified Charitable Distribution.

The Form 1099-R from the financial institution will report a regular distribution.  Nothing on this form will indicate that the distribution was transferred to charity.  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.

[kwaz67]

He made direct transfers form the IRA to the charity. I have these letters from his brokerage and the receiving institutions. Thank you for confirming. This is then not income that he claims and the program did that. I am only second guessing because I am comparing to how he did it last year. 

He paid taxes on all of the distribution last year and shouldn't have on the QCD portions of the distribution.

thanks

kwaz67

[ColeenD3]

As you continue with the interview screens, you will be asked if you donated a portion or all of the distribution to charity. There are eligibility requirements. TurboTax will exclude this amount  and will show the notation QCD.

You have to continue through the interview screen by screen. The screen that asks whether you transferred any of the distribution to charity doesn't say "QCD," but that's what it's about. If you answer that you transferred part of the distribution to charity, the next screen will ask you how much was transferred to charity. The next screen after that will tell you that the amount you specified is designated as a QCD. That last confirmation screen is the only place that you will actually see the term QCD.