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OK tax gurus - question for you

I made a $1300 gift from my IRA to a qualified 501C corporation.

I got my 1099-R form from Vanguard and it listed the $1300 as 'taxable income'. Called Vanguard and they said there's some way on the tax forms to report this and show it as tax exempt. But they insist the 1099-R is 'correct'.

I use H & R Block software.

Where do I do that?


t.
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When entering an IRA distribution into H&R block, the last screen asks for taxable amount. Reduce the taxable amount by the amount of the QCD.
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"When entering an IRA distribution into H&R block, the last screen asks for taxable amount. Reduce the taxable amount by the amount of the QCD."

I did....but there is supposed to be a box there to check QCD distribution..... and there isn't. When you enter the 1099-R info...it asks for withdrawal - next line is taxable amount. Enter zero.... but that is supposed to trigger something that allows you to indicate QCD.

In this case, 100% of the IRA withdrawal went QCD.....1300 bucks - and there was no RMD last year in 2020. I took no other funds.

Otherwise, if only part of your IRA withdrawal is QCD, I think you have to fill out form 8606, but the H&R block program won't let me fill out that form.

t
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If you are using the interview option of HRB, after you enter the 1099-R information including the gross amount and taxable amount (in your case both amounts would be the same) you will be directed to some follow up questions on other pages. Eventually you will get to a page that asks if the distribution was part or all a qualified charitable distribution which is followed by a page where you tell it how much was a QCD. After this is done your tax return should show the correct amounts.
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After you have made the entries you 1040 form should show the total distribution on line 4a and the taxable amount on 4b.
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thanks...that worked. Checking the 'taxable amount not determined' triggered the additional pages. Didn't see that at first. or checked that box. without it, you don't get the follow on screens.

then you get several extra pages and one lets you hit 'QCD' and the amount of your distribution.

this is first year I've done that. will do from now on out - the IRA is rocketing ahead.....so even more money to use!



Works now. No sense giving Uncle Sam a dime more than needed. He's already getting enough dimes from me......and hopefully there will be no changes in cap gains/dividend tax rates! That would kill me.

tele
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Be sure to check the QCD rules for your state. While not taxable at the federal level, that is not the case for all states. You may need to manually add the amount back into your state income.
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