Qualified Charitable Distributions Requirements In TaxAct

Qualified Charitable Distributions (QCDs) were first made available to taxpayers in 2007. A qualified charitable distribution (QCD) is generally a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax deductible contributions. You must be at least age 70 1/2 when the distribution was made. See IRS Publication 17 Your Federal Income Tax For Individuals and IRS Publication 590-B Distributions from Individual Retirement Arrangements (IRAs) for additional information on QCDs.

To enter QCDs after entering Form 1099-R in the TaxAct program (if you need help accessing Form 1099-R, go to our Form 1099-R - Entering Distributions from Retirement Plans FAQ):

  1. From within your Form 1099-R, continue with the interview process until you reach the screen titled Retirement Plan Income - Special Distributions, and click the checkbox next to Qualified Charitable Distribution (QCD).
  2. On the screen titled Retirement Plan Income - Qualified Charitable Distribution, click the data entry field below QCD amount, and type the amount.

If you are not seeing these screens in the Q&A relating to Qualified Charitable Distributions (QCD) and believe you should be, review the following qualifications:

  • The date of birth of the owner of Form 1099-R has to be over 70 1/2 and must be entered in the Basic Info section of the return.
  • The distribution cannot have been reported on Form CSA 1099-R or Form CSF 1099-R.
  • There must be an amount in 2a. Taxable amount or 2b. Taxable amount not determined is checked.
  • Either code "7-Normal distribution" must be selected in 7. Distribution code and no alpha code, OR no numeric code and only code "T-Roth IRA distribution - exception applies" is selected - no other codes will work.
  • The 7. IRA/SEP/SIMPLE box must be checked on Form 1099-R.

Provided the information has been entered correctly, the text "QCD" will automatically appear to the left of Form 1040 U.S. Individual Income Tax Return, Line 4b. However, this will appear on the printed form only. Should this not appear on your printed form, please review your entries using the previous instructions.

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