topic Qualified charitable distributions. A qualified charitab... in Retirement tax questions

I entered a portion of my RMD to charity. However, it was not deducted from my IRA plan withdrawals and gross income. Why wasn't it deducted?

rpatte — Wed, 05 Jun 2019 02:19:33 GMT

Did the plan administrator do a Qualified Charitable Dist...

SweetieJean — Wed, 05 Jun 2019 02:19:34 GMT

Did the plan administrator do a Qualified Charitable Distribution directly to the charity? If so, there is a question that covers that after you enter the 1099-R. The gross amount will not change, but the taxable figure will be shown on Form 1040 with the letters QCD next to it,

Or did you make a charitable contribution yourself from the proceeds you received?

Qualified charitable distributions. A qualified charitab...

macuser_22 — Wed, 05 Jun 2019 02:19:34 GMT

Qualified charitable distributions.

A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.

If you are 70 1/2 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.

The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

Just be aware that some states do not recognize QCD's, so...

SweetieJean — Wed, 05 Jun 2019 02:19:35 GMT

Just be aware that some states do not recognize QCD's, so you may still owe state taxes.