How do I enter the qualified charitable distribution (QCD) that I made from my IRA?
To enter a Qualified Charitable Distribution (QCD) from your IRA on your tax return, follow these steps:
Step 1: Enter Your 1099-R Information
- Input your 1099-R details in the designated section of your tax software or form.
- Ensure the box labeled "IRA/SEP/SIMPLE" is checked in box 7 of Form 1099-R.
Step 2: Indicate the QCD Amount
- At the bottom of the 1099-R input screen, click on "Advanced options."
- Select the checkbox labeled: “Check here if any part of the distribution is Qualified Charitable Distribution (QCD).”
- Enter the dollar amount of the QCD in the field provided.
Step 3: Reporting on Form 1040
- The QCD amount will automatically populate on line 4b of Form 1040, where it will be treated as a nontaxable distribution.
- QCDs are not deductible as charitable contributions, so you cannot claim them again on Schedule A.
Key Requirements for a Valid QCD
- You must be at least age 70½ when the distribution is made.
- The distribution must be made directly by the IRA trustee to a qualified charitable organization.
- Total QCDs for the year cannot exceed $108,000.
Reporting Codes for QCDs
- Use Distribution Code Y on Form 1099-R to report a QCD.
- For non-inherited IRAs, use code 7 in box 7.
- For inherited IRAs, use code 4 in box 7.
Source:
Form 1099-R
Publication 526
Publication 590-B
Form 1040
Disclaimer: Always verify details with official IRS forms and instructions or consult with your tax advisor. OLT (Online Taxes) provides guidance based on retrieved information and does not guarantee accuracy for individual circumstances.