Qualified Charitable Distribution Deducted in Prior Year and Returned in Current Year
What is the proper reporting when a Qualified Charitable Distribution is made directly from an IRA to a qualified charity in Year 1, but the check is returned (undeliverable) in Year 2?
In Year 1, the QCD was excluded from income. In Year 2 the check was deposited into a non-IRA account.
Permalink Submitted by David Mertz on Wed, 2019-03-06 14:04
This would have been reported as a regular distribution on a Year 1 Form 1099-R. Unless the individual chooses to treat it as constructively received in Year 2 (which would require explanation to the IRS and generally would not make sense if this was an RMD distribution for Year 1), it’s reported on the Year 1 tax return like any regular IRA distribution paid to the IRA owner, not reported as a QCD since it ultimately was not a QCD.