charitable donations from IRA’s
I have a client who is 73 who is making multiple charitable donations from his IRA. The form the custodian uses only has normal distribution as an option. Will my client need to just maintain records and exclude these dollars from his income when filing taxes.
Permalink Submitted by Alan - IRA critic on Tue, 2013-12-17 22:05
Yes. He will report a QCD in similar fashion to a rollover. The 1099R form will look like any other 1099R he would receive for his RMD or other distribution. The amount donated as a QCD should be deducted from the taxable income on line 15b of Form 1040 and “QCD” entered on the line next to 15. Since the first distribution taken in a calendar year is deemed to be the RMD, if client wants to donate his entire RMD he needs to request the QCD check before taking any other distributions that year. The QCD is not extended for 2014, and Congress may not act until very late in the year, so taxpayers will have to wait on their RMD as well for 2014 until the situation is clarified by Congress.