1099 Reporting
Dear Mr. Slott:
I am instructing my broker to make a QCD directly to an established 501(c)(3) from my IRA, in partial satisfaction of my 2019 RMD.
Query: Will the broker’s 1099 reflect both the full IRA distribution and the QCD amount? If not, please explain why the QCD amount will not be listed on the 1099. Thank you.
Permalink Submitted by David Mertz on Fri, 2019-11-08 18:25
A QCD is reported on Form 1099-R the same as any regular distribution since the IRA custodian has no way to know if the amount sent to the charity truly qualifies as a QCD; per IRS instructions for preparing Form 1099-R, nothing on a Form 1099-R identifies what portion of the total on the form is QCD. It’s up to you to identify on your tax return what portion of the total on the Form 1099-R is QCD by excluding the QCD from the taxable amount on Form 1040 line 4b and including the notation “QCD” next to the line.