TurboTax doesn’t calculate the deductible part of a Charitable Gift Annuity for you. You will need to do this yourself. To do this, you first need to determine the charity's "gift amount". This is the amount above the present value of the annuity payments. Charities typically provide a charitable deduction letter showing the exact deductible amount.
If you do not have a charitable deduction letter, you will need to contact the charity to provide you with a statement showing the Investment in Contract and the Charitable Deduction amount to provide you with details regarding the donation.
Once you have this knowledge, here is how to report in TurboTax.
- Go to Federal
- Select Deductions & Credits
- Scroll to Charitable Donations
- Choose Donations to Charity
- Enter the deductible amount only (not the full gift)
- Select the donation type:
- Cash if you donated cash
- Stock/Mutual Funds if you donated appreciated assets
TurboTax will then include the deduction on Schedule A if you itemize. Keep your CGA acknowledgment letter for your records.
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