Ask Terry Questions QCD from IRA

QCD from IRA

By Terry Savage on January 31, 2019 | Taxes & Economy

I recently turned 71 and am starting my RMD’s. We made a $5,000 contribution direct to a charity. I was surprised when my $5,000 was totaled in with the rest of my RMD distributions on the 1099R. Do I just deduct it in my tax reporting?

Thanks, Bob

Terry Says

Great question, and it made me do some research!  I’m just going to cut and paste from the IRS instructions!  And here’s a link to that page 

It appears there are TWO lines on your tax form for dealing with this issue.  One is the  line for reporting the overall withdrawal — and the other is the line for reporting the taxable amount of the withdrawal.  But do check with your tax advisor.

Can a qualified charitable distribution satisfy my required minimum distribution from an IRA?

Yes, your qualified charitable distributions can satisfy all or part the amount of your required minimum distribution from your IRA. For example, if your 2014 required minimum distribution was $10,000, and you made a $5,000 qualified charitable distribution for 2014, you would have had to withdraw another $5,000 to satisfy your 2014 required minimum distribution.

How are qualified charitable distributions reported on Form 1099-R?

Charitable distributions are reported on Form 1099-R for the calendar year the distribution is made.

How do I report a qualified charitable distribution on my income tax return?

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. See the Form 1040 instructions for additional information.

You must also file Form 8606, Nondeductible IRAs, if:

  • you made the qualified charitable distribution from a traditional IRA in which you had basis and received a distribution from the IRA during the same year, other than the qualified charitable distribution; or
  • the qualified charitable distribution was made from a Roth IRA.



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