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wjonesmaine
New Member

How do I deduct a Gift Annuity to a charity ?

 
4 Replies
DavidS127
Expert Alumni

How do I deduct a Gift Annuity to a charity ?

A gift annuity is deducted as a charitable donation, a component of itemized deductions. You deduct charitable donations in the Federal>Deductions & Credits>Charitable Donations section.  Or, select the magnifying glass icon in the upper left, and enter "charitable" in the search box, then click "Go To Donations" in the "Where do I enter my donations?" box.

 

The deduction is equal to the amount of the contribution to the charity, less the "present value" of the payments charity will make back to you.  The present value of the payments is determined using life expectancy tables and assumed earnings prescribed by the IRS.

 

This website, although not authoritative for tax purposes, provides a good overview of gift annuitie....

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Moe145
New Member

How do I deduct a Gift Annuity to a charity ?

Thank you, your response was helpful.  Another question-where/how do I enter the capital gain that the charity has stated that I need to report in 2019?  I am using TT Premier

Moe145
New Member

How do I deduct a Gift Annuity to a charity ?

How/ Where do I enter the capital gain amount that the charity states that I need to report for 2019?  I am using TT Premier

BarbaraW22
Expert Alumni

How do I deduct a Gift Annuity to a charity ?

If the company sent you a 1099-R, the capital gain will be reported on Box 3 of the 1099-R. See the screenshot below.

 

 

 

To enter your 1099-R, click on Search in the upper right-hand corner and then type in "1099-r" in the search box. Click on "Jump to 1099-r." Enter the information from the 1099-R exactly as it is reported. Then answer the questions that follow and you will reach a section that asks for more information about your capital gain. Please see the screenshot below.

 

 

 

 

Please contact the administrator of your charitable annuity to determine if any of the capital gain should be reported in this section. Once you have answered all the questions, TurboTax will transfer the amount of your distribution that is a capital gain to the correct form and the remainder of your distribution will be reported as ordinary income in Box 4d of Form 1040. You can verify the correct amount is reported on your Form 1040 by following these steps: 

 

  1. Click on "Tax Tools" from the menu on the left-hand side of the screen and then click on "Tools"
  2. Click on "View Tax Summary"
  3. Then click on "Preview my 1040" from the menu on the left-hand side
  4. Scroll down and confirm the amount reported on Line 4d
  5. To return to the program, click on "Back" from the menu on the left-hand side

 

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