Qualified Charitable Distributions (QCD)

Forum|Forum|4 years ago
February 26, 2022
2 replies
23 views

How are QCDs reported on a personal tax return?

One search told me: 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.

Another search : A distribution made directly from an IRA as a charitable contribution can be reported as a Qualified Charitable Deduction if one is using the standard deduction and not itemizing deductions on Schedule A. However, if one is itemizing deductions, QCD is prohibited from also being reported on Schedule A.

Any help is greatly appreciated.

ProSeries Basic

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dascpa

Level 11

1099-R worksheet QCD line below line 19-1.

T

Tani

Level 3

I tried that. My client donated his total distribution but when I enter the amount the program tells me there QCD should not have a value. It worked on another return I did, however, that return was only donating a portion of the RMD.

qbteachmt

Level 15

"however, that return was only donating a portion of the RMD."

What is on the 1099-R? A QCD will qualify as an RMD. An RMD is not a QCD if your taxpayer took ir directly and then donated it. Donating a portion of the RMD still requires you to know if that was direct from the brokerage or directly from the taxpayer. That's what the 1099-R should help you determine. and that's why a QCD is not also a deduction; there is no reporting of the income, so there also is no deduction.

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qbteachmt

Level 15

Sched A (itemizing) isn't needed for the giving route from the IRA trustee to the charity, directly. The tax payer isn't the donor, in that example. The taxpayer doesn't record it as income, and therefor there is no reason to itemize this amount to get any offset. If you tried also to itemize it, that would be double-dip deduction.

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