How to enter a check written from an IRA [for Qualified Charitable Distribution from IRA]

Donald Griffith

There is no provision In an Q IRA to describe a check written directly out of an IRA from available cash to Charity

Sherlock

Donald Griffith said:

I have a checking account I can write my own check directly out of an IRA to a charity. There is no description describing "why" available in the Q list of predesignated reasons for the action and it will not allow you to write in "chk" or anything out of list

Quicken does limit the Action pull-down menus of IRA accounts.  I suggest you press Ctrl + N and select the appropriate Cash Transaction option offered in the Enter transaction: pull-down menu.

Frankx

Hi @Donald Griffith,

Just curious - which type of account is the IRA - Brokerage, Mutual Fund, Bank, or something else.  I have the following options available in my and my spouses' IRA's.  Do you not have these:



Let me know.  Thanks.

Frankx

Rocket J Squirrel

@Frankx a check can be entered into an IRA in Quicken, but Q doesn't handle the tax treatment of QCDs.

Frankx

@Rocket J Squirrel

I didn't see anything in the question about that, need to get a new pair of glasses I guess...

Frankx

Rocket J Squirrel

Did you miss the capitalized word Charity in the OP?

Donald Griffith

Problem solved The Cntl N and the category now available - solves any category problem and if you have assigned the Q category to rate the withdrawal correctly, and since it is tax free, there is no charity deduction allowed.

Sherlock

UKR said:

Reviewing this discussion, I come to the following conclusion:

• Yes, it's possible to record a Check transaction and to categorize it to a (newly created) Category Qualified Charitable Deduction Distribution from IRA.
• However, it is not possible to assign the correct Tax Line Item to this category because the list of available tax line items is missing an entry for Form 1099-R:Qualified Charitable Deduction Distribution from IRA

Does that sound correct?
If so, how do we get Quicken to review this and add this line item to the list ... if possible before this year's taxes are due?

Vote for: https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-qcds-and-roth-conversions

Frankx

UKR said:

Reviewing this discussion, I come to the following conclusion:

• Yes, it's possible to record a Check transaction and to categorize it to a (newly created) Category Qualified Charitable Deduction Distribution from IRA.
• However, it is not possible to assign the correct Tax Line Item to this category because the list of available tax line items is missing an entry for Form 1099-R:Qualified Charitable Deduction Distribution from IRA

Does that sound correct?
If so, how do we get Quicken to review this and add this line item to the list ... if possible before this year's taxes are due?

Just to be accurate - it is important to note that there is no reporting of a Qualified Charitable Distribution (the correct term is not "Deduction" - because it is a "potential exclusion" from income not a deduction) on IRS Form 1099-R, or on any other IRS information returns.  So anybody who thinks they will see that number on a 1099 form is mistaken.

And while it s true that certain IRA distributions, or portions thereof, that are paid to a qualified charitable organization may be excluded from taxable income if certain requirements are met, the payor (the financial institution, insurance company, etc.) is not required to, or even able to, determine which, or how much of, such payments may be excluded from income.  This is not only because of the payor's inability to know whether the IRA holder meets all IRS requirements, but also because it is clearly the taxpayer's responsibility to make such determinations. 

So while it will be extremely helpful for Quicken users to separately categorize such distributions in Quicken so that they are clearly distinguishable from other types of distributions, having them flow to a "tax line" should not happen.

Frankx

Rocket J Squirrel

This is known. Vote:
https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-qcds-and-roth-conversions 

Donald Griffith

I have a checking account I can write my own check directly out of an IRA to a charity. There is no description describing "why" available in the Q list of predesignated reasons for the action and it will not allow you to write in "chk" or anything out of list

Sherlock

Donald Griffith said:

I have a checking account I can write my own check directly out of an IRA to a charity. There is no description describing "why" available in the Q list of predesignated reasons for the action and it will not allow you to write in "chk" or anything out of list

Quicken does limit the Action pull-down menus of IRA accounts.  I suggest you press Ctrl + N and select the appropriate Cash Transaction option offered in the Enter transaction: pull-down menu.

Frankx

Hi @Donald Griffith,

Just curious - which type of account is the IRA - Brokerage, Mutual Fund, Bank, or something else.  I have the following options available in my and my spouses' IRA's.  Do you not have these:



Let me know.  Thanks.

Frankx

Rocket J Squirrel

@Frankx a check can be entered into an IRA in Quicken, but Q doesn't handle the tax treatment of QCDs.

Frankx

@Rocket J Squirrel

I didn't see anything in the question about that, need to get a new pair of glasses I guess...

Frankx

Rocket J Squirrel

Did you miss the capitalized word Charity in the OP?

Donald Griffith

Problem solved The Cntl N and the category now available - solves any category problem and if you have assigned the Q category to rate the withdrawal correctly, and since it is tax free, there is no charity deduction allowed.

Frankx

Looks like I didn't!

Frankx

UKR

Reviewing this discussion, I come to the following conclusion:

• Yes, it's possible to record a Check transaction and to categorize it to a (newly created) Category Qualified Charitable Deduction Distribution from IRA.
• However, it is not possible to assign the correct Tax Line Item to this category because the list of available tax line items is missing an entry for Form 1099-R:Qualified Charitable Deduction Distribution from IRA

Does that sound correct?
If so, how do we get Quicken to review this and add this line item to the list ... if possible before this year's taxes are due?

Sherlock

UKR said:

Reviewing this discussion, I come to the following conclusion:

• Yes, it's possible to record a Check transaction and to categorize it to a (newly created) Category Qualified Charitable Deduction Distribution from IRA.
• However, it is not possible to assign the correct Tax Line Item to this category because the list of available tax line items is missing an entry for Form 1099-R:Qualified Charitable Deduction Distribution from IRA

Does that sound correct?
If so, how do we get Quicken to review this and add this line item to the list ... if possible before this year's taxes are due?

Vote for: https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-qcds-and-roth-conversions

Donald Griffith

This mostly answers the question I posted and at least it is a workaround. My account is a Schwab Investment - somebody asked.

Frankx

UKR said:

Reviewing this discussion, I come to the following conclusion:

• Yes, it's possible to record a Check transaction and to categorize it to a (newly created) Category Qualified Charitable Deduction Distribution from IRA.
• However, it is not possible to assign the correct Tax Line Item to this category because the list of available tax line items is missing an entry for Form 1099-R:Qualified Charitable Deduction Distribution from IRA

Does that sound correct?
If so, how do we get Quicken to review this and add this line item to the list ... if possible before this year's taxes are due?

Just to be accurate - it is important to note that there is no reporting of a Qualified Charitable Distribution (the correct term is not "Deduction" - because it is a "potential exclusion" from income not a deduction) on IRS Form 1099-R, or on any other IRS information returns.  So anybody who thinks they will see that number on a 1099 form is mistaken.

And while it s true that certain IRA distributions, or portions thereof, that are paid to a qualified charitable organization may be excluded from taxable income if certain requirements are met, the payor (the financial institution, insurance company, etc.) is not required to, or even able to, determine which, or how much of, such payments may be excluded from income.  This is not only because of the payor's inability to know whether the IRA holder meets all IRS requirements, but also because it is clearly the taxpayer's responsibility to make such determinations. 

So while it will be extremely helpful for Quicken users to separately categorize such distributions in Quicken so that they are clearly distinguishable from other types of distributions, having them flow to a "tax line" should not happen.

Frankx

UKR

Hi, @Frankx ,

thank you for pointing out my mistake, Distribution vs. Deduction.
I have taken the liberty of changing all prior posts to use the correct word instead.

And thank you for explaining all the nuts and bolts of QCDs.
UKR