I just made a qualified charitable distribution from my traditional IRA. Will the 2021 Form 1099-R reflect the QCD?
NO. People age 70 1/2 and older can transfer up to $100,000 yearly from traditional IRAs directly to charity. These QCDs can count as part of the required minimum distributions (RMDs), but they are not taxable and they are not added to your adjusted gross income.
The 1099-R will only show the distribution. The reason for this, is custodians lack first hand knowledge to discern whether a particular payout meets the QCD rules. When filling out your Form 1040 or 1040-SR, include the total amount if IRA distributions shown on 1099-R on line 4a. Then subtract the QCD and report the remainder, even if $0 on line 4b. Write “QCD” next to line 4b. If filing electronically, a drop – down box for line 4 gives you the option to click QCD.