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03-17-2014 02:02 PM - edited 03-17-2014 02:04 PM
I had a MRD this year and took out $10000 of which $2700 was withheld for Federal Tax and the remainder was directly rolled over as a QCD (Qualified Charitable Distribution) How do I report this on HRBlock at Home Deluxe?
The only thing I see is under deductions it says not to report it there but it doesn't say where to report it.
When I filled in my 1099R that was where this came from the form had box 1 & 2 as 10K and then the box was checked that said taxable amt not determined. Then later it asked if I rolled it over to a Roth IRA, a designated Roth IRA or an IRA or other plan
Do I check this and do I have to submit an explanation somewhere?
I am confused!
08-09-2016 02:19 PM
Did you get a response fro the tax experts? According to IRS, we enter zero for taxable portion on the 1099-R, and write 'DCD' next ot it. I can't find out how to 'write' QCD on my online filing.
08-09-2016 03:00 PM
Welcome to the community.
You're definitely on the right track.
For a qualified charitable distribution you will need to leave the taxable amount blank (entering zero may work in the desktop software) and click "next" when you are finished with the rest of your Form 1099-R. The amount of the distribution will then appear on Line 15A of your Form 1040 as a non-taxable distribution amount.
The IRS wants you to write "QCD" next to the amount on Line 15A of your tax return, however the software does not have a way to do this so you will need to print and mail your tax return to the IRS.
Also something to point out here is that anything given to charity from an IRA charitable distribution cannot be deducted on Schedule A because it is already tax free.
I hope this helps you out & please ask if you have any other questions.
08-09-2016 03:11 PM
Thank you. That is what I was afraid was the answer. Since I am at the beginning of the boomers, if H&R are listening they should consider adding this capability. A friend told me that another company's software will let you type in QCD. Since I'm beyond mailing things, I will switch software next year.
Thanks again for the answer.
08-25-2017 04:18 PM - edited 08-25-2017 04:21 PM
This appears to be a major defect.
The Block Form shows a space for how much is a qualified Charitable donation, but does not seem to let you fill it in without making it an override that prevents electronic filing.
Since I am using HR Block only for the Amazon extra 10% rebate, it appears using an override would prevent receiving this.
One possibility might be to fill in 2 1099R forms once with 4h100,0000 qualified charitable donation (it appears you can check the box for the full amount), and one with the remainder.
Another might be to reduce the taxable amount to the correct value, and then check the box.
This would apparently get the Amazon 10%, but it would appear necessary to the file an amended return via mail to make it clear what was happening.
Any advice would be appreciated.
Since I anticipate making qualified charitable distributions in the future, since would seem a good reason not to use HRBlock software again.
08-30-2017 02:30 PM
I'm not sure about the version you got from Amazon, but the regular Premium version handles QCDs correctly. When you enter the 1099-R, the program checks the birthdate you entered. If you're over 70 1/2, it will ask if this distribution is a QCD. You have three options:
If you choose the second option, it will ask how much was the QCD.
The program correctly enters "QCD" in the box on line 15 of the 1040, the total distribution on line 15a, and any taxable amount on line 15b (the original poster had taxes withheld of $2,700 - this would be taxable).
I can't explain why your program is creating an override. Have you already checked with Product Support (1-888-482-9288)?