How do I file for Qualified Charitable Distributions in Turbo Tax? I download tax data from the brokerage, and that doesn't show how much went to charities.

[VolvoGirl]

After the 1099Rs are entered keep going and it will ask if any was for QCD.  You have to be 70 1/2 to make a QCD.  Was this from your RMD?   

[tapaculo]

Thank you for the quick reply. Yes, I am over 70 1/2. It is from my RMD; in particular, I instruct my IRA administrator to reduce the RMD amount they deposit in my bank account by the amount I send to the charities. Note that the last two years I did that by writing checks associated with that IRA account; this year I have started doing it by filling out a form to direct the brokerage to send the check. 

So answering that question on a QCD is enough for the IRS to accept that reduction in the income shown in the tax data downloaded from the brokerage? (Last year I noticed that question and entered the amount, the first year I did not!)

[Mike9241 · Accepted solution]

Unknown if a brokerage would report this anywhere. Distributions from a taxable account to charities is not a QCD.  You have a QCD when you take a Required Minimum Distribution from an IRA account during the year and direct the IRA custodian to send $X directly from the IRA to the charity. If they send you the money and you send it to charity it does not qualify as a QCD.  The 1099-R does not report a QCD. it will report the gross amount including the QCD in Box 1. In Turbotax once you enter the 1099-R it will ask if the is an RMD to which if you answer yes it will ask a further question about a QCD. Line 4a on your 1040 will then show gross , taxable and a notation QCD. 

[tapaculo]

I am aware that "if they send you the money and you send it to charity it does not qualify as a QCD," I never did that. As I have read in several places, "Your IRA administrator must make the distribution directly to the charity, or you may write a check to the charity from your IRA checkbook." Is that not true? That is what I did in previous years, and would prefer if it is indeed proper. I know about those questions that Turbo Tax asks, and hope the IRS accepts that, though if audited I can provide documentation of what went directly to charities.

Thank you again...

[Mike9241]

so what is your question? The IRS does not ask for QCD support when filing. and the broker probably doesn't report it especially since it seems you write checks from the IRA a/c to the charity (perfectly ok). After entering the 1099-R and indication it's a RMD you'll be asked questions about the QCD. You enter the total amount you sent to all qualified charities from the IRA during the year. each charity should be sending you an acknowledgement which you use as proof if the IRS inquires. 

[tapaculo]

Thanks, in particular for confirming that checks (from the IRA account) are OK