RMD's with a QCD From IRA

[bill18163]

There is something I noticed while doing my 2025 taxes. I have to take RMD's from my IRA each year and I usually contribute a QCD each year from my IRA. Now I just received a 1099-R for my IRA and I am just going to use some fictitious numbers to explain my question. Let's say my RMD requirement for 2025 was $96,000 and I removed $8,000 each month for a total of $96,000 for the year. I have now satisfied my RMD for 2025. But during the year I had a QCD for $1,000 sent to my charity of choice. Ok, now I receive a 1099-R that says that my total distribution for the year is $97,000 in box 1. Box 2 says that my taxable amount is $97,000. Nowhere on the 1099-R does it say anything about the $1,000 QCD. TT does ask if you contributed a QCD and I said yes and entered the amount.  When this data all transfers to the 1040 it shows a $97,000 distribution using a QCD of $1,000 and a taxable amount of $90,000.  Tell me where I received a tax break for donating the $1,000.

[bill18163]

Sorry, I made a mistake on the last line of my post. "and a taxable amount of $90,000." should be "and a taxable amount of $96000." 

[MinhT1 · Accepted solution]

You have correctly answered TurboTax's question about the QCD and TurboTax has reduced the taxable amount by $1,000. Your taxable income is $96,000 instead of $97,000.