1099 for QCDs

[RetireBy90]

I was reading Ed Slott's site just now and found a piece on QCDs
A Dozen QCD Facts at https://www.irahelp.com/slottreport/dozen-qcd-facts

It ended with the following:

"And a bonus QCD fact: There is no code on a 1099-R that indicates a QCD."

Question for those that have used QCDs, how are they reported on your tax forms?

 

[Souschef]

A QCD is reported as a distribution code 7, I believe. I use Turbotax, and one of the questions when you enter the 1099 is: Is any of this a QCD? If you answer yes, it asks the amount.
On the 1040SR, Line 4a will list the total distribution from the 1099's, and line 4b will the the difference between Line 4a and your QCD's. To the left of Line 4b will be "QCD".

 

[RetireBy90]

Thanks Souschef !!

 

[braumeister]

There is no special code to indicate a QCD. It's just lumped in with any other distributions as 7 (Normal distribution). The rest of Souschef's answer is correct.

 

[harllee]

DH did several QCDs from his IRA last year. The 1099R showed the distribution to him but did not indicate it was a QCD. But when I did the taxes on Turbotax, I was asked if the distribution was a QCD. When I answered yes, it was indicated on the tax return that it was a QCD and the QCD amount was subtracted so it was not taxable. A little confusing but it worked out on the tax return.

 

[SecondCor521]

There is nothing on the 1099-R to denote a QCD and the taxpayer reports their QCDs on their return as the others have said.

If a taxpayer makes QCDs during a tax year and claims them on their 1040, the burden is on the taxpayer in the event of an audit to show that the funds were (a) paid directly (b) to a 501(c)(3) and (c) the taxpayer has a receipt from the charity. The charity will typically provide a letter showing (b) and (c). (a) can be shown by saving a copy of the check from the IRA to the charity; I suppose other methods are possible.

QCDs are also limited to $100K per taxpayer per year.