If you are referring to making a Qualified Charitable Distribution (QCD) from your IRA, there is a
provision within TurboTax to take care of this.
However, it will not reduce your
taxable income directly. You will
simply not pay tax on the portion of the distribution that was transferred to
the charity.
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 15a will include the
amount of your distribution and line 15b 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.
Since you are not being taxed on the distribution that was
transferred to the charity, you cannot also claim a deduction on Schedule A.
Click on the picture below for a visual reference of the
screen you will see with regard to the QCD.
To go directly to the section of your return to enter your
Form 1099-R, use these steps:
-
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 and enter your information
