I had my IRA trustee make a withdrawal which satisfied part of my RMD for my IRA and send it directly to a charity. I did not handle this money at all. It went directly from my IRA to the charity. I believe that my taxable income from this IRA 1099 should be reduced by this QCD in line 4b of my 1040. Is this true? How is this reported? Thanks.
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While entering your form 1099-R, if you have entered a birth date which makes you older than 70 1/2 in the tax year, TurboTax will ask you if any portion of your distribution was transferred to charity. Answer Yes to that question and you can then enter the amount transferred to charity.
The code in box 7 of form 1099-R must be 7 and the box IRA/SEP/SIMPLE must be checked.
TurboTax will then reduce the taxable amount by the amount transferred to charity.
The notation "QCD" will appear between lines 4a and 4b (form 1040)to explain the difference.
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