QCD

Forum|Forum|6 years ago
January 28, 2020
2 replies
9 views

If I transfer money directly from Fidelity to my church using their bank account and routing number, will Turbo Tax pick that up and treat it as a QCD (Qualified Charitable Distribution)? If not what do I need to do to accomplish a QCD?

DavidD66

Level 15

No, TurboTax will not pick up a transfer to your church as a Qualified Charitable Distribution (QCD). In order to properly report a QCD in TurboTax, you will need to enter your Form 1099-R. Your Form 1099-R must have code 7, and the IRA/Simple box must be checked. In addition, you must be at least age 70 1/2 (according to the date of birth in TurboTax) at the end of the tax year. As you enter your 1099-R, you will be asked any of your distribution was transferred to charity. If you answer yes,the next screen will ask how much you transferred to charity. The next screen will let you know that the amount you transferred to charity is designated as a QCD (if you qualify for a QCD). This is the only place that you will actually see QCD mentioned.

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jwcjwc

Level 2

Unfortunately the above answer is about right and clear as mud. In other words TurboTax Home and Business does a terrible job. It basically makes it hard, hides QCD in a fog, and "help" is nearly useless.

Good luck, the hard work is worth it, but you are pretty much on your own.l

UPDATE: I apologize for my above comments NOT being helpful. Here is more practical information:

"As stated by expert DanaB27, the distribution must be from an IRA, the distribution code on Form 1099-R must be '7', and the IRA/SEP/Simple box must be checked in order for TurboTax to recognize that the distribution may qualify as a QCD. "

The QCD total is the total QCD contributions and only listed here and one time. The next box asks for RMD and as best I can tell is the total RMD amount which does not change and must not be exceeded simply because the allowable QCD can not exceed the total RMD for the year. As long as QCD is less than RMD, then the total amount of QCD is subtracted from income, AGI and all should be well. However, it seems to be hidden by TurboTax, so one way to tell is the amount of estimated taxes to be paid changes significantly. And do NOT list those charitable donations any other place, just keep your receipts. Best wishes!