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Why is there no option to show that I made a qualified charitable distribution from my inherited IRA?

 
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3 Replies
DawnC
Employee Tax Expert

Why is there no option to show that I made a qualified charitable distribution from my inherited IRA?

Keep going through the interview; there are follow-up questions.     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 question if it was a Qualified Charitable Distribution.

 

TurboTax includes the full amount of the distribution reported on your Form 1099-R on line 4a (IRA Distributions) of your Form 1040. The taxable amount reported on Line 4b will be the total distribution less the QCD amount and will have "QCD" entered next to it.   Check the qualifications below to ensure you qualify.  

 

QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income.

 

A distribution made directly to the IRA owner, who then gives it to a charity, doesn't qualify as a QCD.

 

Qualifications

 

  • You must be 70 1/2 or older to make a QCD.   A QCD can be made when you reach the age of 70 1/2, even if you're not subject to RMDs until the age of 72. (This applies to taxpayers affected by the SECURE Act, which pushed the RMD requirement to age 72 if you turn 70 1/2 after December 31, 2019.)
  • The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. If you file taxes jointly, your spouse can also make a QCD from their own IRA within the same tax year for up to $100,000.
  • For a QCD to count towards your current year's RMD, the funds must come out of your IRA by your RMD deadline, generally December 31.
  • Contributing to an IRA may result in a reduction of the QCD amount you can deduct.  If you make a deductible IRA contribution after you turn 70 1/2, it will reduce the amount of the QCD that's excluded in your gross income.

There are requirements for the charity too, see the full FAQ

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bbauch32
New Member

Why is there no option to show that I made a qualified charitable distribution from my inherited IRA?

I don't ever get a question on if it was a Qaulified Charitable Distribution - only get questions around it being a Qualified Disaster distribution.

JamesG1
Expert Alumni

Why is there no option to show that I made a qualified charitable distribution from my inherited IRA?

Is the recipient of the 1099-R income 70 1/2 years or older?  Verify the date of birth of the recipient at My Info.

 

Can I make a QCD?

 

While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:

 

  • You must be 70½ or older to be eligible to make a QCD.
  • QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
  • The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
  • For a QCD to count towards your current year’s MRD, the funds must come out of your IRA by your MRD deadline, generally December 31

@bbauch32

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