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ahulter
New Member

How do I enter on TT as an above the line deduction

Gift of stock to a charitible organization from an IRA RMD.

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4 Replies

How do I enter on TT as an above the line deduction

For what?  Different things get entered in different places.
Coleen3
Intuit Alumni

How do I enter on TT as an above the line deduction

If you had a QCD, be sure that your IRA box is checked in the program. As you follow the interview questions, you will be asked about your contribution. See the screen shot below.

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.

Any amount donated above your MRD does not count toward satisfying a future year's MRD.

Funds distributed directly to you, the IRA owner, and which you then give to charity do not qualify as a QCD.


How do I enter on TT as an above the line deduction

Just be aware that some states do not recognize QCD's, so you may still owe state taxes.
dmertz
Level 15

How do I enter on TT as an above the line deduction

Also, a QCD is an exclusion from income, not a deduction.  The amount that you indicate is QCD never appears on line 4b to begin with and is indicated by the notation "QCD" next to line 4.

Also, it a bit unusual to make a QCD as an in-kind distribution because a QCD must be paid directly to the charity by the IRA custodian.  It's usually much easier to sell the shares inside the IRA and make the QCD in cash since it produces the same result.  If the shares are first distributed to you and you subsequently donate the shares to the charity, this does NOT qualify as a QCD.  Instead it must be reported as a charitable contribution on Schedule A.  

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