UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: RatioFool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75781  
Subject: Re: Charitable Contributions from an IRA Date: 5/25/2013 2:52 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
The tax law is very clear. A qualified donation directly to a charity from an IRA is not reported on your tax return. See Internal Revenue Code Section 408(d)(8). That lowers your AGI for medicare purposes as well.

Yes, you will get a 1099-R for that contribution. You leave it off the return and retain the appropriate documentation to show the IRS in case they question why it was left off.

In short, your Tax Pro #1 was wrong.


Yes, Tax Pro #1 was wrong, but in effect, qualified charitable distributions are "reported" on Form 1040. They're just are not included in adjusted gross income. See the instructions for 2012 Form 1040, Lines 15a and 15b.

Enter the total of IRA distributions from Forms 1099-R on Line 15a, "IRA distributions." Enter the part that is not for qualified charitable distributions on Line 15b, "Taxable amount." Enter "QCD" next to Line 15b.

Not a tax pro, but can follow instructions,

Ratio ~
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement