QCD from RMD input

[linduca1216]

on 1099-R input sheet, is just the line regarding the charitable contribution entered or should the RMD line just below it also be completed?

Am afraid that entering amount in both fields will result in IRS confusion...

[Just-Lisa-Now-]

I only enter the QCD line  Ive never used that RMD line, Im honestly not sure what its for/what it does.

[linduca1216]

I'm thinking that is the best way.   I did enter both last year... since it was an RMD but one that was a charitable contribution.   I'm thinking  the IRS  did not see it as a QCD because of that.

[Just-Lisa-Now-]

Did QCD show up on the retirement line on the front page of the 1040 next to Line 4a??

[linduca1216]

Yes, it did.  With zero on line 4B.   BUT, per client, I think the IRS is questioning it.   ugh...

[Just-Lisa-Now-]

So the entire amount was donated to the charity?  If IRS is questioning it, they'll probably just need the acknowledgement letter from the non-profit.

[linduca1216]

Yup.   To several different ones.   The Broker provided a letter but I didn't send that as an attachment.  Didn't think it was necessary.   I'll check further with Proseries support regarding input, etc.

Thanks~

[sjrcpa]

Every year a couple of my clients get letters from IRS saying they didn't report their 1099-R IRA distributions. Even though they were QCDs and the return showed as such. One poor lady has gotten letters for 4 or 5 years.

A response to IRS with charitable contribution from IRA eventually clears it up.

And I don't use ProSeries.

[Just-Lisa-Now-]

You dont have to attach anything, I think the computers just miss those letters in the margin, Ive had them miss the one for when someone is MFS and has SS but they havent lived with the spouse all year, I think its  D that prints on the SS line.  I sent in a copy of the 1040 with that letter code highlighted and circled in red and all was cleared up.