Putting Your 2017 QCD on Your Tax Return: Four Things You MUST Know | Ed Slott and Company, LLC

Putting Your 2017 QCD on Your Tax Return: Four Things You MUST Know

Wednesday, April 04, 2018
By Beverly DeVeny
Director of Retirement Education
Follow Us on Twitter: @theslottreport
 
A QCD is a qualified charitable distribution. It is a way to transfer funds from your IRA to a qualifying charity as a non-taxable distribution. It can also satisfy your RMD (required minimum distribution) for the year. You must be at least age 70½ at the time of the transaction to qualify.  Here are four things you must know about your QCD and your tax return:
 
  1. The IRA custodian does not do any special tax reporting of your QCD. They simply report the total amount of your distributions for the year.
  2. Your tax preparer won’t know you did a QCD unless you tell him/her. If you don’t tell them, you will be taxed on your QCD.
  3. You are responsible for telling IRS about your QCD transaction on your federal income tax return. 
  4. The instructions for reporting a QCD can be found in the instructions for Form 1040 (or other form you might be using for your return). You may need to share these instructions with your tax preparer.
 
From the instructions for Form 1040, page 25, Lines 15a and 15b.
 
Exception 3.
If all or part of the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 15a. If the total amount distributed is a QCD, enter -0- on line 15b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 15b unless Exception 2 applies to that part. Enter “QCD” next to line 15b.
 
 
 
 

Receive Ed Slott and Company Articles Straight to Your Inbox!

Enter your email address:

Delivered by FeedBurner

 

Tax Planning

Posted in: beverly deveny, Tax, IRS, QCD

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.