What do I enter as a QCD if I made contributions to my IRA after age 70 1/2?
The amount of QCDs you can exclude from your income is reduced by the amount of IRA contributions you made since age 70 1/2 that you deducted on prior year returns. However, if those IRA contributions reduced excludable QCDs in earlier years, they won't reduce your excludable QCD this year.
Use the Qualified Charitable Deduction Adjustment Worksheet to figure your excludable QCD for 2025.
For example, Jim became age 70 1/2 in 2023 and deducted $5,000 for contributions he made in 2024 and 2025 but makes no contribution for 2026. Jim makes no QCD for 2024 and makes QCD of $6,000 for 2025 and $6,500 for 2026.
He determines he has no excludable QCD for 2025, so he would enter $0 for his QCD. His 2025 QCD is reduced by the aggregate amount of $10,000 of the contributions he deducted in 2024 and 2025, which reduces his excludable QCD to a negative amount of $4,000.
Jim decides to make a QCD of $6,500 for 2026. Jim uses the remainder of the aggregate amount of the contributions he deducted in 2024 and 2025 ($4,000) to reduce the $6,500. This leads to an amount of $2,500 that he will enter for his QCD in 2026 ($6,500 - $4,000 = $2,500).
Use the Qualified Charitable Deduction Adjustment Worksheet to figure your excludable QCD for 2025.
For example, Jim became age 70 1/2 in 2023 and deducted $5,000 for contributions he made in 2024 and 2025 but makes no contribution for 2026. Jim makes no QCD for 2024 and makes QCD of $6,000 for 2025 and $6,500 for 2026.
He determines he has no excludable QCD for 2025, so he would enter $0 for his QCD. His 2025 QCD is reduced by the aggregate amount of $10,000 of the contributions he deducted in 2024 and 2025, which reduces his excludable QCD to a negative amount of $4,000.
Jim decides to make a QCD of $6,500 for 2026. Jim uses the remainder of the aggregate amount of the contributions he deducted in 2024 and 2025 ($4,000) to reduce the $6,500. This leads to an amount of $2,500 that he will enter for his QCD in 2026 ($6,500 - $4,000 = $2,500).
