Qualified Charitable Distributions (QCD)

[DER-CPA]

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.

[dascpa]

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

[qbteachmt]

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.

[Tani]

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]

"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.

[Tani]

My taxpayers trustee donated in directly so it qualifies as a QCD.  What I dont understand is why it wont let me enter the amount.  On my other return it did so on the 1040 it is QCD on the taxable pension line.  I guess the only other thing I can do is change the taxable amount on the 1099 to 0.

[qbteachmt]

Try this article, expand the QCD part at the bottom:

https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853

[DER-CPA]

There is no 1099-R.  I finally just entered it "as if" a 1099-R had been issued.  The client does have a letter from the institution verifying the recipients and amounts of the QCDs.  

[rbynaker]

Just guessing, what's the taxpayer's age?  (Or spouse if it's a spousal QCD.)

Is the IRA box checked on the 1099-R?

[Tani]

Figured it out.  Stupid mistake on my part.  Forgot to check the IRA box on the 1099 R Worksheet.  Think I am done for the day lol!

[Tani]

He is in his eighties.  The IRA box was checked, I just missed it.  I drove myself crazy!!!