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 or 1040-SR. The taxable amount reported on Line 4b will be the total distribution less the QCD amount and will have "QCD" entered next to it.
Qualifications
- You must be 70 1/2 or older to make a QCD. A QCD can be made when you reach the age of 70 1/2, even if you're not subject to RMDs until the age of 72 or 73.
- The maximum annual amount that can qualify for a QCD is $108,000. This applies to the sum of QCDs made to one or more charities in a calendar year. If you file taxes jointly, your spouse can also make a QCD from their own IRA within the same tax year for up to $108,000, for a potential total of $216,000.
- For a QCD to count toward your current year's RMD, the money must come out of your IRA by your RMD deadline, generally December 31.
- Contributing to an IRA may result in a reduction in the QCD amount you can deduct. If you make a deductible IRA contribution after you turn 70 1/2, it'll reduce the amount of the QCD that's excluded in your gross income.
Additional Rules for QCDs