Tax Reporting for 2014 Qualified Charitable Distributions: What You Need to Know
By Beverly DeVeny, IRA Technical Expert
Follow Me on Twitter: @BevIRAEdSlott
We still get questions on how a taxpayer should report a QCD (qualified charitable distribution) on their tax return. The IRA custodian does not show the distribution as a QCD on Form 1099-R. It is reported as a normal taxable distribution. Since this provision of the tax code has always been a temporary one, even though it keeps getting renewed by Congress, the IRS Form 1099-R has never been revised for these distributions.
On the IRS Form 1040, the amount on the 1099-R goes on line 15a. On line 15b you put the taxable amount of the distribution. This would be any amounts that the taxpayer kept. It would not include any QCD amounts, which are tax-free. You use the letters QCD on line 15b to tell IRS that the amount not shown as taxable on line 15b is due to the funds directly transferred to charity.
The QCD provision for 2014 was renewed late in the year, but there were no transition rules. If you missed the 12/31/14 deadline, there was no way to do a QCD in 2015 and have it count for 2014.
Currently, there is no QCD provision for 2015. Congress may extend it again, and they may again do it late in the year. There have been proposals in Congress to make the QCD provision permanent. That also may or may not happen.
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@example.com 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.
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 firstname.lastname@example.org or (516) 536-8282 with any questions.