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If you receive income from charitable gift annuities reported on Form 1099-R, the amount reflected in Box 3 will report the capital gains that are already included in the taxable amount reported in Box 2a of the form.  The following instructions will ensure the capital gains amount is taxed at the lower rate it is eligible for.

Report your Form 1099-R and enter your charitable gift annuity information (if you need help reporting Form 1099-R, go to our Form 1099-R - Basic Information FAQ):

  1. From within your Form 1099-R, continue with the interview process until you reach the screen titled Enter the remaining details from the Form 1099-R.
  2. Type your amounts in the data entry fields below Box 1 - Gross distribution, Box 2a - Taxable amount, Box 3 - Capital gains (included in box 2a).
  3. Scroll down to the Box 7 section, click the dropdown below Box 7 -  Distribution code, and click F-Charitable gift annuity.
  4. Continue with the interview process to enter your information.

The amount entered in Box 3 with code "F" will transfer to Schedule D, Line 8 as Form 1099-R. This amount will also be reported on Form 1040, Line 7.


Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.


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