Arkansas and IRA QCD's

[H---S]

My 2021 Arkansas Individual Income Tax Return has been reviewed by an Arkansas State auditor, and I was required  to file an amended Arkansas Return to include our total IRA RMD's as income on Lines 18a and 18b of Form AR2 and the IRA  QCD's on Line 13 of Form AR3.  

TurboTax treats IRA RMD's and IRA QCD's the same for both the Federal Return and the Arkansas Return, even though Arkansas does not recognize the Federal treatment.  

There is only one reference to "tax-free distributions from individual retirement plans for charitable purposes" in the Arkansas Code Annotated A.C.A. 26-51-404 (b) (28).  It is applicable only to tax years 2006 and 2007.  

Please correct this error before the 2022 TurboTax editions are issued.  

[tagteam]

You might want to contact Support for this issue.

What is the TurboTax phone number? (intuit.com)

[H---S]

No, that is not an answer.  I do not want to call TurboTax and wait on hold.  There seems to be no way to report a tax problem to TurboTax.

Is there an email address for TurboTax?

[tagteam]

Try the link below.

https://www.intuit.com/company/executives

[wadeblakey]

Please advise on TurboTax treatment of QCDs from IRAs as it pertains to Arkansas state income taxes for tax year 2023. According to a 2022 note, Arkansas does not treat the QCDs as a reduction to income and requires the filer to claim the total IRA distributions as income and the QCDs as itemized deductions. Please advise. 

[DaveF1006]

Yes, this is correct. The state of Arkansas treats QCD strictly as itemized deductions and not a reduction of income like the federal government does.

[Edited 04/03/24|7:42 am PST]

@wadeblakey 

[wadeblakey]

A QCD is a Qualified Charitable Distribution. When made directly from an IRA it is not considered taxable, even though it is a taxable IRA distribution as shown on form 1099-R.. The 1099-R distributions include the QCD(s); however, the QCDs (up to $100,000) are deductible from the 1099-R income for federal filings. It appears that Arkansas does. It recognize this treatment and wants all 1099-R distributions to be reported as taxable income and to take the QCDs as itemized charitable donations. I hope you better understand now. 

[wadeblakey]

I consulted with a local CPA and was advised that he has confirmed Arkansas accepts the federal treatment of QCDs. Also after a couple of conversations with AR DFA representatives, they honored my filing with QCDs being treated the same as federal. Seems like the state needs to publish a specific directive to taxpayers regarding this issue to eliminate the confusion.