topic Re: Qualified Charitable Distributions in State tax filing

Qualified Charitable Distributions

seibelco — Fri, 21 Feb 2020 18:31:19 GMT

I am using the standard deduction on my Federal form. I live in Colorado and I can get a credit for my Qualifying Charitable Contributions (less $500), even though I did not itemize on Federal. My question is that I have $3,885 in qualifying charitable contributions, plus an additional $2,450 that was a Qualified Charitable Deduction as part of my IRA/RMD distribution. Can I include the additional $2,450 on my Colorado state tax form. Thanks

Re: Qualified Charitable Distributions

DavidS127 — Fri, 21 Feb 2020 19:10:44 GMT

If I understand your facts correctly, you have $3,885 of charitable contributions you made from your personal funds, and another $2,450 of qualified charitable distribution remitted from an IRA trustee directly to charities.

Given that scenario, the $2,450 of qualified charitable distribution is not in your federal AGI and so it won't be in your Colorado AGI. In other words, the $2,450 of qualified charitable distribution from the IRA has already been excluded from both federal and Colorado taxable income and can't be deducted again.

Of the $3,885 made from your personal funds, $3,385 (the amount over $500), is a subtraction from you federal AGI to arrive at Colorado taxable income.

Re: Qualified Charitable Distributions

harry8 — Mon, 24 Feb 2020 14:26:23 GMT

I have taken all of the RMD for 2019 including $3140 sent by the trustee by check directly to a charity. How does Turbotax accomodate this?

Re: Qualified Charitable Distributions

BillM223 — Mon, 24 Feb 2020 14:45:27 GMT

In the screens following your entry of the 1099-R for the distribution from your IRS, you will be asked about your RMD - just answer "all" or "some" or "none" whatever the case may be - and then you will be asked if all or some or none of the distribution was transferred to a charity.

If you answer "some", then TurboTax will ask you how much was transferred to a charity. The amount transferred to the charity (the Qualified Charitable Distribution, or QCD) will be not be added to line 4b (i.e., not taxable).

Note that the QCD does not appear on Schedule A as a normal contribution, and you should not enter the charity under itemized deductions (unless you happened to have donated other good or money to the charity).