Solved

When a distribution form an IRA is a QCD, what goes in the taxable amount blank

Forum|Forum|7 years ago
June 3, 2019
2 replies
0 views

I donated 5000 of my IRA for a QCD. Tubotax won't accept 0 in the taxable blank., even though I have described it as a QCD in the following questions.

TurboTax Premier Online

Best answer by dmertz

For a code 1, 2 or 7 Form 1099-R with the IRA/SEP/SIMPLE box marked, box 2a must always have the same amount as is in box 1. As TurboTaxColeen described, you'll indicate in the follow-up questions after entering the Form 1099-R details that you had some or all of the box 1 amount transferred to charity. TurboTax will exclude the QCD amount from the amount on Form 1040 line 4b and will include the notation "QCD" next to the line.

D

dmertzAnswer

Employee

For a code 1, 2 or 7 Form 1099-R with the IRA/SEP/SIMPLE box marked, box 2a must always have the same amount as is in box 1. As TurboTaxColeen described, you'll indicate in the follow-up questions after entering the Form 1099-R details that you had some or all of the box 1 amount transferred to charity. TurboTax will exclude the QCD amount from the amount on Form 1040 line 4b and will include the notation "QCD" next to the line.

C

Coleen3

Employee

You don't put a zero in Box 2, unless there is a zero on your actual form. You can't make changes to an official reporting form. Make sure the IRA box is checked on your screen in the program. The program will show that it is a QCD. See the screen shot below for the entry screen.

Can I make a QCD?

While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:

You must be 70½ or older to be eligible to make a QCD.
QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
For a QCD to count towards your current year’s RMD, the funds must come out of your IRA by your RMD deadline, generally December 31.

Any amount donated above your RMD does not count toward satisfying a future year's RMD.

Funds distributed directly to you, the IRA owner, and which you then give to charity do not qualify as a QCD.