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Form 1099-R – Qualified Charitable Distributions

Qualified charitable distributions (QCD): Up to $100,000 of qualified charitable distributions (QCD) reported on Form 1099-R can be excluded from income. For returns filing Married Filing Jointly, each spouse can exclude up to $100,000. Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over at the time of the distribution that is paid directly from the IRA to a qualified charity.

To enter qualified charitable distributions reported on a 1099-R, from the Main Menu of Keystone Tax Solutions Pro select:

  • Income Menu
  • IRA/Pension Distributions.
  • Select New and enter the Payer’s Information.
  • Enter the Gross Distribution in Box 1 as it is shown on the 1099-R. For Box 2a, subtract the amount of any qualified charitable distribution from the gross distribution and enter the difference. Continue to enter any other items reported on the 1099-R.
  • Exit the 1099-R entry screen and select the Other button. Select IRA Qualified Charitable Distribution, then select YES.

Having done the above steps, the taxable amount entered in Box 2a will pull to Form 1040, Line 4b. When printing the 1040, the abbreviation QCD will display at the bottom of page 2, indicating that the taxable amount is less than the gross distribution due to a Qualified Charitable Distribution.

NOTE: This is a guide to entering Qualified Charitable Distributions into the Keystone Tax Solutions Pro program. This is not intended as tax advice.

Additonal Information:

Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)

Updated on September 9, 2020

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