How do I account for QCD's?

Forum|Forum|4 years ago
March 16, 2022
2 replies
25 views

How do QCD's reduce my taxable income?

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Mike9241

Level 15

that should have been a question you came across when entering your 1099-R.

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Mike9241

PattiF

Level 15

To report a qualified charitable distribution on your Form 1040 tax return, you'll use the 1099-R (even though there's no indication that it was a QCD). Enter the info as a 1099-R and you'll be asked in one of the follow-up questions if it was a Qualified Charitable Distribution.

TurboTax includes the full amount of the distribution reported on your Form 1099-R on line 4a (IRA Distributions) of your Form 1040. The taxable amount reported on Line 4b will be the total distribution less the QCD amount and will have "QCD" entered next to it.

The amount that you donate is not taxed as income. If you need to take an RMD (required minimum distribution) and donate this to charity the amount will not be included in your income. This excludes non-deductible contributions. You will also get a deduction for the charitable contribution on the schedule.

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