WITAXLADY Posted February 24, 2022 Report Share Posted February 24, 2022 today received first time ever - direct contributions - 1 1099-R showed code D7 and the other showed 7 - how do I show the 7 one as non-taxable? Attach the letters from the charity as a pdf? Thx d Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 24, 2022 Report Share Posted February 24, 2022 In ATX on the 1099-R data entry screen, scroll down near the bottom and check the box for QCG and input the amount. It subtracts it for the taxable amount on page 1. I've been doing this since the first year and just keep the support documentation in my files. I have never attached to the return. Sort of like the expenses and non-1099 income on Sch C, I guess. Make sure you have the support if needed. 3 Quote Link to comment Share on other sites More sharing options...
TexTaxToo Posted February 24, 2022 Report Share Posted February 24, 2022 Checking the appropriate box should print "QCD" on line 4b. That's supposed to keep the IRS happy, but they may send a letter anyway, so make sure the documentation is retained. 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 24, 2022 Report Share Posted February 24, 2022 And make sure you don't include the charitable deductions paid with a QCD on Schedule A or the new charitable deductions line. They really didn't implement this in the best way and it's easy to double dip, unintentionally. 5 Quote Link to comment Share on other sites More sharing options...
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