Question

QCD. Does Alabama follow federal regulations that provide for QCD's to reduce taxable income from RMD's?

Forum|Forum|6 years ago
February 12, 2020
1 reply
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Yes, Alabama follows federal law in regards to QCDs.

Be sure to tell TurboTax that this is a QCD in the screens after you enter your 1099-R.

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G

Giffodb

$35k of my IRA distribution was from a qualified defined benefit plan, the rest (approx 5K) was a QCD. The Federal filing treats it correctly, however the TurboTax Alabama form treats the entire 40k as defined benefit plan (non taxable). How can I get turbo to show it correctly on my state return?

Thanks

E

ErnieS0

TurboTax does correctly handle a qualified charitable deduction (QCD) on the Alabama return. For example, if you withdrew $40,000 and gave $5,000 to charity, $35,000 is taxable for federal and Alabama.

TurboTax shows this:

You can manually adjust the taxable amount in the Alabama section.

Go the Alabama in State
Go to About Your Retirement Distributions. Click EDIT
Say NO on Alabama Special Handling of This Distribution
On Some or All of Your Distribution is Taxable, change the amount (in this case $35,000 is correctly shown)