Kentucky 2010: IRA Distribution to Charity
Taxpayers who are age 70 ½ or older can make a distribution of up to $100,000 directly from their IRA account to a charitable organization and not pay tax on that distribution on their federal tax return. The state of Kentucky does not conform to this federal tax law and that distribution is taxable on the Kentucky tax return. The amount is also deducted as a charitable contribution on the Kentucky return.
Certain TurboTax customers, who contributed their IRA distribution to a charity, may have an incorrect Kentucky return. Their federal tax return is correct.
This issue has been fixed.
How to tell if you are impacted:
You may be affected if ALL of the following are true:
- You filed your Kentucky tax return prior to March 11, 2011 AND
- You are over the age of 70 ½ AND
- Contributed your IRA distribution to a charity AND
- The IRA distribution was not taxable on your federal tax return AND
- Your Kentucky tax return does not show the amount of this distribution on Form 740, Line 6 (Additions from Schedule M.)
If you are affected, you may have underpaid your Kentucky tax. You will need to amend your Kentucky tax return.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the Kentucky- IRA contribution to charity.
Solution
Let us do the work for you. We highly recommend this.
- Please download and print this Authorization Form.
- Complete the form and fax it to us at the number printed at the top of the form.
- Note: After we receive your completed authorization form, please allow up to 15 days to amend your return.
- You can print, sign and mail the corrected return to the Kentucky Department of Revenue.
Or you can make the corrections yourself. However, the amend process can be complex.
- To do it yourself, please follow these step-by-step instructions.
- After you make the changes to your tax return, you will need to mail a copy to the Kentucky Department of Revenue.
- If you need assistance, call us at the phone number in the TurboTax email.
