I had a small RMD from a tranditional IRA sent directly to my church in 2023. Is the RMD taxed

Russell
Russell Member Posts: 4 Newcomer
edited January 15 in Retirement Income

Also, I made contributions to the IRA after I was 70 1/2.

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  • AlexO
    AlexO FreeTaxUSA Agent Posts: 102

    Hello, Russell!

    That is a great question!

    It sounds like you performed a Qualified Charitable Distribution (QCD). Is that correct?

    If so, this RMD is not taxable as long as it was paid directly from the IRA to the charitable organization.

    For more information, see the IRS link below:

    https://www.irs.gov/newsroom/reminder-to-ira-owners-age-70-and-a-half-or-over-qualified-charitable-distributions-are-great-options-for-making-tax-free-gifts-to-charity#:~:text=Normally%2C%20distributions%20from%20a%20traditional,to%20an%20eligible%20charitable%20organization.

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  • Russell
    Russell Member Posts: 4 Newcomer

    I recall somewhere reading that if you made contributions after 70 1/2 , you could not count the QCD until the amount of contributions after 70 1/2 contributions total was reached. Is this correct?

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  • Russell
    Russell Member Posts: 4 Newcomer

    Thanks, this was answered above by JMSSGV

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  • DavidL
    DavidL Member Posts: 1 Newcomer

    For a QCD to be nontaxed, do I have to be 70-1/2 at the end of the year or at the date of making the donation?

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  • krisdensley
    krisdensley Member Posts: 3 Newcomer

    I have a small business by taking care of my father. I use mileage to get a tax reduction and a book that every Sunday I write down the odometer to track my mileage. What should I be careful with? Can I let others know they can do the same thing legally? Where can I find the documents to support the idea of small business and taking care of elders? I don't have a business license or anything…what should I be careful about?

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  • krisdensley
    krisdensley Member Posts: 3 Newcomer

    I do my friends and families taxes using mileage for their small business' and in Florida you don't have to take any testing or certifications to be a tax prep person. What would you recommend I take or learn to help others do the same?

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  • krisdensley
    krisdensley Member Posts: 3 Newcomer

    I got a new roof new windows, new ac, new water heater. What forms should I use to get a discount? thank you alll…..

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  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 340
    https://community.freetaxusa.com/discussion/comment/2891#Comment_2891

    Keeping track of your mileage in a journal is an excellent method. Just be aware of running personal errands in that trip. Yes, you could suggest to others to use a similar method. Written records of mileage are key.

    Being a care provider for the elderly is a good business. Check with your state to see if you need a license. That is something to check into. Other than that you seem to have things covered.

    The IRS has some requirement for preparing taxes. You need a PTIN and and EFIN. Check into those things. If you want to be 100% legit, consider studying for and taking the Enrolled Agent exam and pass it to become and Enrolled Agent with the IRS.

    The "new roof new windows, new ac, new water heater" are not tax deductions, but may qualify for the Energy Efficiency Credit. See that section to see if you qualify for a tax credit.

    Please start a new discussion, post or question when asking more than one question. Thanks.

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