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What do I do with this 1099 for my IRA charitable contribution? Thumbnail

What do I do with this 1099 for my IRA charitable contribution?

Insights

As we approach the end of the year and the time when people typically make their charitable contributions, I wanted to take a moment to clarify a subject of great confusion.

I get the following question with some consistency:

After I made my charitable contribution, why did I get a 1099 form? What do I do with it?

If you’ve given to charity by doing a qualified charitable distribution from your IRA, you get a 1099-R form from the brokerage firm holding the IRA account in custody. This form basically tells the IRS the amount of the withdrawal, among other things.

Although a QCD does not count towards your taxable income, it’s still important to provide this information to the IRS when you file your taxes. Give this 1099-R form to your accountant or whoever is preparing your taxes, as this distribution must be recorded on your tax return.

 

If you have questions about the specifics, please send us a message and we’d be happy to discuss.

 


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