QCD vs deduction

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I have QCD donations -- is it better (less tax) to list as a contribtuon or as QCD from retirement plan

Hal_AlAnswer

Level 15

Q. Does a QCD donation reduce my income or treated like a normal charitable contribution (deducted on schedule A)?

A. It reduces your income.

But, you will not see a line item (a QCD amount) on any IRS form for the reduction (deduction). Look at lines 4a and 4b on form 1040. Line 4a will be the total amount of the distribution. Line 4b will be the reduced taxable amount. The notation "QCD" will appear on the dotted line between lines 4a & 4b. The difference between the two amounts will usually be the amount of the QCD. But, if your distribution also included portions of previous non-deductible contributions, that amount will also be in the difference.

Mike9241

Level 15

QCDs are not deductible as charitable contributions on Schedule A. But, as with deductible contributions, the donor must get a written acknowledgement of their contribution from the charitable organization before filing their return.

Mike9241

OldCarGuyAuthor

Level 5

yes I have the letters and the QCD form from the bank -

- does a QCD donation reduce my income or treated like a normal contribtion

Hal_Al

Answer

Level 15

Q. Does a QCD donation reduce my income or treated like a normal charitable contribution (deducted on schedule A)?

A. It reduces your income.

dmertz

Level 15

For a distribution that satisfies the requirements to be eligible to be claimed as a QCD, I can't imagine any situation where deducting the contribution on Schedule A would be beneficial compared to claiming the distribution as a QCD, but I can imagine many situations where it would be detrimental to claim it on Schedule A instead of as a QCD.