Does a federal income tax return submitted through the TurboTax software inform the IRS of a QCD made from Traditional IRA distributions?

Forum|Forum|1 year ago
February 26, 2025
2 replies
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This appears to be required by the IRS as stated in IRS Publ. 590B under the discussion starting on page 13 about Qualified Charitable Distributions.

Best answer by BillM223

Yes. The letters QCD appear on the 1040 on line 4a.

BillM223Answer

Yes. The letters QCD appear on the 1040 on line 4a.

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tesoutherAuthor

Thanks. Very helpful. BTW, Cash App Taxes doesn't do this. I expect that they will next year.

VolvoGirl

Employee

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. 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.

A IRA QCD should be 0 taxable on 1040 line 4b and QCD written by it. Unless you have other 1099R taxable amounts on 4b.