RMD and qualified charitable deduction. Two questions

[drj838]

This is my first year for a required minimum distribution, so I also used qualified charitable distributions.   I’m quite confused when I go to TurboTax.   I get two 1099Rs from Raymond James although from the same account.  The first 1099R indicates my gross distribution and federal income tax withheld.  In other words, it looks very similar to the one I got last year.  The second 1099R shows a gross distribution, which is actually my qualified charitable distribution.  It then shows that as a taxable amount.  I don’t know why that amount would be taxable.  

When I use the interview, it wants to know how much RMD is required from the account second 1099R.    I would assume $0 since it was my QCD but  I should indicate the gross distribution?

Thanks in advance

[AmyC]

1. The two 1099-R forms are correct. The IRS puts the responsibility on you to show the QCD. Follow these steps:

1. Open your return to the 1099R 
2. enter the second 1099-R exactly as the form shows with the taxable amount. 
3. Keep your eyes wide for a screen that says "Do any of these uncommon situations apply?" or "Did you transfer this to charity?" 
4. Select Yes, - since in fact you did. 
5. A box should pop up asking the amount of QCD, enter the amount.
6. You can look at your 1040. Line 4a is the total and line 4b is the taxable part.

2. The RMD amount to enter is the full amount. This lets the IRS know that you took the RMD and gave it away. The QCD counts as part of your RMD.

Reference: Seniors can reduce their tax burden by donating to charity