To report a Qualified Charitable Distribution on your tax return, enter the full IRA withdrawal on the IRA distributions line of Form 1040 or 1040-SR, enter zero on the taxable amount line if the entire distribution went to a qualified charity, and write “QCD” next to that line.1IRS Newsroom. Seniors Can Reduce Tax Burden via IRA Donations
What to Enter on Form 1040 or 1040-SR
On the IRA distributions line, put the total amount that came out of the account. On the taxable amount line, put zero if every dollar went directly from the IRA trustee to an eligible charity. Then write or type “QCD” next to the taxable amount so the IRS knows why the two figures differ.1IRS Newsroom. Seniors Can Reduce Tax Burden via IRA Donations
If you donated only part of the distribution, subtract the donated amount from the total and enter the remainder as the taxable amount. The “QCD” notation still goes on that line.1IRS Newsroom. Seniors Can Reduce Tax Burden via IRA Donations
For 2025, the maximum you can exclude from income this way is $108,000 per person. On a joint return, each spouse can make QCDs from their own IRA up to that annual limit.1IRS Newsroom. Seniors Can Reduce Tax Burden via IRA Donations2IRS. Internal Revenue Bulletin: 2024-47
Tax software typically has a field for the QCD amount and adds the notation to the finished return for you. On a paper return, you have to write “QCD” beside the taxable amount line yourself; without it, automated processing can flag the entry.1IRS Newsroom. Seniors Can Reduce Tax Burden via IRA Donations
Why Your 1099-R Will Show the Full Amount as Taxable
Your IRA custodian sends Form 1099-R, usually by January 31 of the year after the distribution. Box 1 shows the total amount withdrawn. Box 2a often shows that same amount as taxable, because custodians generally do not track whether a distribution was sent to a charity.1IRS Newsroom. Seniors Can Reduce Tax Burden via IRA Donations3IRS. Guide to Information Returns
Do not copy Box 2a straight onto the taxable amount line. The QCD adjustment is what reconciles the 1099-R figure with what actually belongs in your income.
The Charity Acknowledgment You Need
You also need a written acknowledgment from the charity confirming the donation. It should state that the organization is eligible to receive tax-deductible contributions and whether you received any goods or services in exchange. You are not required to attach it to your return, but you need it in your files.4IRS. Charitable Contributions: Written Acknowledgments
Records to Keep After You File
Keep the paperwork that shows the transfer went directly from the IRA trustee to the charity:5IRS. IRS Topic No. 305: Recordkeeping
- Form 1099-R from your IRA custodian.
- The written acknowledgment from the charity.
- Financial records showing the funds moved directly from the IRA to the nonprofit.
Three years is the common retention period, but the IRS can look back six years when income is significantly underreported. These records are your proof that the distribution was non-taxable if the return is later questioned.5IRS. IRS Topic No. 305: Recordkeeping
Eligibility Boundary
A QCD is available only if you were at least 70½ on the date of the distribution, and the money must go directly from the IRA trustee to a charity eligible to receive tax-deductible contributions. A withdrawal you take yourself and then donate does not qualify for the income exclusion, even if the charity is eligible.1IRS Newsroom. Seniors Can Reduce Tax Burden via IRA Donations