QCD

Forum|Forum|2 years ago
June 28, 2023
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What do I have to do to report a Qualified Charitable Distribution (QCD)? Do I have to fill out 1055-R Forms and submit them to the IRS? I already filled out a form from my financial institution and they payed the money to the charity institution from my RMD.

Ask the Experts - Energy - June 2023

Best answer by K M W

There is no special code on the 1099R for a Qualified Charitable Distribution - it is up to you to report the portion of your distribution that meets the rules to be not taxed as a qualified charitable distribution.

To report your qualified charitable contribution, you would simply report the 1099R as issued to you, but then the taxable amount would be adjusted to eliminate the portion used for as a Qualified Chartable Distribution. The gross distribution of the IRA will show on the front of the 1040 form for IRA distributions; however the line for taxable amount should show "QCD" and the portion used for the QCD should not be included in the taxable amount line.

Remember you cannot claim these charitable contributions as an itemized deduction on Schedule A for the amount you are reporting as a QCD.

BettieG

Hi @stolat10! Great question!

To report a qualified charitable distribution on your Form 1040 tax return, you generally report the full amount of the charitable distribution on the line for IRA distributions. On the line for the taxable amount, enter zero if the full amount was a qualified charitable distribution. Enter "QCD" next to this line. See the Form 1040 instructions for additional information.

You must also file Form 8606, Nondeductible IRAs, if:

you made the qualified charitable distribution from a traditional IRA in which you had basis and received a distribution from the IRA during the same year, other than the qualified charitable distribution; or
the qualified charitable distribution was made from a Roth IRA.

This can easily be done in TurboTax!

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OldRock

I did enter "QCD" on the Taxable Amount line supporting detail. I entered zero as the taxable amount and entered the full distribution amount as a Qualified Charitable Distribution. TurboTax flags the zero taxable amount as an error.

MayaD

Enter your 1099-R form (even though there's no indication that it was a QCD), 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.

For more information, check: What is a Qualified Charitable Distribution?

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VolvoGirl

Employee

After you enter the 1099R into your tax return it will ask if it was a QCD and how much. Is this for 2022 or 2023? For 2022, If you already filed your 2022 return you may need to amend it.

stolat10Author

For 2023

K M WAnswer

Remember you cannot claim these charitable contributions as an itemized deduction on Schedule A for the amount you are reporting as a QCD.

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quorumof1

Hi There:

Each bank or brokerage company has its own internal form to transact a QCD. From there, at the end of the tax year, it will issue you an appropriate form1099-R. From there use form 1099R with Turbo Tax Online to report to the IRS the QCD, which the program will include as part of your tax return.