Lost QCD check, replaced following year
Client mailed his QCD check 7/23, which was lost in the mail. Discovery was made 12/23 and check was reissued, but not received by client/mailed to charity until 1/24. 1099-R shows distribution in 2023; charity acknowledged for 2024. How to report on 1040?
Permalink Submitted by Alan - IRA critic on Tue, 2024-04-02 23:00
Because the QCD was not mailed to the charity and postmarked in 2023, it is not a valid QCD for either year, but would qualify for an itemized deduction in 2024 if client otherwise qualifies to itemize. Therefore, the total 1099R will be taxable income (except for IRA basis) in 2023.
Neither can the check be counted as a QCD for 2024 because the distribution was not made in 2024. Therefore, the net effect what would have occurred prior to QCDs, a taxable distribution from the IRA and a donation to the charity from the taxpayer in 2024 subject to possible itemizing.