Where do I enter the charitable deduction from a gift annuity?

loromtt — Mon, 08 Mar 2021 05:15:57 GMT

Like a gift annuity to the Red Cross

Re: Where do I enter the charitable deduction from a gift annuity?

KathrynG3 — Mon, 08 Mar 2021 16:12:38 GMT

Gift annuities are not claimed for the full amount because a portion is an investment for the donor, who will receive a fixed payout for lifetime.

Calculate the deduction by taking the full gift amount less the present value of all the annuity payments.

To do this in TurboTax, follow these steps:

From the left menu, select Federal.
Navigate to the second tab listed toward the top of the window and select Deductions & Credits.
Scroll down to Charitable Donations and Show More.
At Donations to Charity in 2020, select Start and follow the prompts.
At Let's enter your donations one at a time, enter Red Cross for Who did you donate to in 2020? and select Add by Items.
At We'd like to check some details about the stocks you gave to Red Cross, check the box for I attached conditions on a donation. and Continue.
At Choose a category for this donation, select what is applicable, such as Cash, Securities (not Stock) or Other personal property, and Continue.
At Tell us about the items you gave to Red Cross, enter Gift Annuity,
1. enter the Value: The full amount of the gift less the present value of all the payments expected over your lifetime.
2. select Present Value.
Follow through the rest of the prompts including entering the date you acquired the annuity and answering if the donation will be used in direct association with the charity's function.

Annually, the Red Cross should tell you the portion of your payments that is tax free adn the portion subject ot capital gains or regular income taxes.

Re: Where do I enter the charitable deduction from a gift annuity?

Zorillo — Fri, 19 Mar 2021 00:43:24 GMT

Thank you, that helped a lot! The steps you provided didn't exactly apply to a cash donation for a charitable gift annuity (using TT Home & Business), but we'll see if it passes muster!

topic Where do I enter the charitable deduction from a gift annuity? in Deductions & credits

Where do I enter the charitable deduction from a gift annuity?

Re: Where do I enter the charitable deduction from a gift annuity?

Re: Where do I enter the charitable deduction from a gift annuity?