A qualified charitable distribution (QCD) is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or more at the time of the distribution that is paid directly from the IRA to a qualified charity.
Up to $100,000 of QCDs from an IRA reported on Form 1099-R can be excluded from income. For a couple filing MFJ, each spouse can exclude up to $100,000.
In TaxSlayer Pro, entering a QCD is a two-step process:
- Enter the 1099-R.
- Indicate the return includes a QCD.
To enter a QCD in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Income
- Form 1099-R, RRB, SSA
- Add or Edit a 1099-R or + Add, as needed
- Enter the payer's EIN, name, and address
- 1 Gross Distribution - Enter the gross distribution as shown on Form 1099-R Box 1.
- 2a Taxable Amount - Enter the difference between the gross distribution and the amount of the QCD. If the entire distribution was a QCD, enter $0.
- Enter information in the remaining fields as needed. Be sure to check the IRA/SEP/Simple check box.
- Click Continue. Because the taxable amount is less than the gross distribution, you will be asked if this is correct. Click Continue.
- If queried about completing Form 8915-F for a disaster distribution, click Skip.
- Upon returning to the IRA/ Pension Distributions menu, select Nontaxable Distribution.
- Click the check box to indicate that a QCD is on the return. then click Continue.
Having done the above steps, the taxable amount in Box 2a, if any, will flow to Form 1040, Line 4b. When printing the 1040, the abbreviation QCD will display at the bottom of page 1 explaining why the taxable amount is less than the gross distribution.
Note: This is a guide to entering a 1099-R used as a qualified charitable distribution into TaxSlayer ProWeb. This is not intended as tax advice.
Additional Information:
Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)