I had my broker pay $3,000 of my RMD directly to qualified charities. Where should I show that reduction in taxable RMD on my return? The 1099-R shows taxable amount not determined from an RMD of $4,131.41.
The Form 1099-R from the financial institution will report a regular distribution. Nothing on this form will indicate that the distribution was transferred to charity.
You indicate the charitable contribution in the questions that follow the 1099-R entry screen:
The Form 1099-R from the financial institution will report a regular distribution. Nothing on this form will indicate that the distribution was transferred to charity.
You indicate the charitable contribution in the questions that follow the 1099-R entry screen:
The gross distribution amount will be on the 1040 line 4a and the taxable amount minus the QCD amount on line 4b with "QCD" written next to it if entered properly.
Probably because I am not 70 1/2 I am not getting the QCD screen. How can I access that?
Then it is not a QCD. You must be 70 1/2 (or older) when a QCD is made.
If not 70 1/2 then it is just a regular charitable donation deductible as an itemized deduction on schedule A if you have enough other deductions to itemize.
Your broker should have told you that unless the broker has the wrong age for you.
See IRS Pub 590B
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590b">https://www.irs.gov/publications/p590b</a>
[quote]
Qualified charitable distributions.
A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution. See Records To Keep in Pub. 526.
[end quote]
Railroad retirement pension 1099R nothing to fill in on line3 to 9
@larryfasick A railroad pension does not qualify for a QCD which is the topic of this thread is about. Only IRA's can makd a QCD.
If your question is not about a QCD then please start your own thread with a new question and provide the details.
Where does the form lower the taxable RMD showing the charitable donations
When you transfer part of your IRA distribution to a charity as a Qualified Charitable Distribution (QCD), TurboTax will take your age into account and determine if you qualify to make a QCD. After you enter the information from your Form 1099-R which reports the distribution there will be some follow-up questions. One of those questions will be if the distribution was transferred to a qualified charitable organization. You can choose either all, part, or none of the distribution was transferred. This will take care of reporting the distribution correctly on your return.
Then, on your actual Form 1040, line 4a will include the amount of your distribution and line 4b will show any taxable amount ($0 if the entire distribution was transferred to the charitable organization) and the designation QCD will be shown on that line as well.
In the 2020 version of TurboTax, I do no see the questions regarding charitable contributions in the screens following my entry into the 1099-R. Am I missing something?
Are you over 70 1/2? Did you say you took the RMD? Keep going though the all the 1099R questions. It maybe at the very end of the 1099R section.
@RelaxAtHume wrote:
In the 2020 version of TurboTax, I do no see the questions regarding charitable contributions in the screens following my entry into the 1099-R. Am I missing something?
If you are age 70 1/2 or older and you checked the box for IRA/SEP/SIMPLE, the questions related to a QCD are asked after entry of the 1099-R.
@RelaxAtHume wrote:
In the 2020 version of TurboTax, I do no see the questions regarding charitable contributions in the screens following my entry into the 1099-R. Am I missing something?
If you are using the CD/download desktop version then there was an update that fixed that, be sure you are up to date.
I made a screen shot. Right after you enter the 1099R boxes the next screen has a list of items.
THEN you answer how much was the RMD and then the next screen is....
For some reason, I do not see these screens after entering the RMD.
@RelaxAtHume wrote:
For some reason, I do not see these screens after entering the RMD.
Is the IRA/SEP/SIMPLE box checked on your 1099-R?
Are you using the online or desktop version?
Yes, the box is checked and I am using the desktop version.
I saw another post that recommended change my birthdate in personal info so that I could see the boxes to make the entry, and then changed my birthdate back. But when I try to file the return, TurboTax brings me back to that entry for QCD on the 1099-R and won't let me submit the return!!
I should clarify that I inherited the IRA from my mother who was born in 1921, so its my understanding that the RMD to QCD should qualify, even though I am personally just under 70 1/2.
To do a QCD from an inherited IRA you, the beneficiary, must be 70 ½ or older. That's the reason you are not seeing the screens pertaining to a QCD in TurboTax.
Please see these discussions and articles: