QCD

Forum|Forum|6 years ago
January 28, 2020
2 replies
31 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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LrbinMT

Level 2

Excellent explanation but for some reason TurboTax is not asking me if this is a QCD. Is TurboTax making the 70.5 age calculation properly?

macuser_22

Alumni - Champ

@LrbinMT wrote:

Excellent explanation but for some reason TurboTax is not asking me if this is a QCD. Is TurboTax making the 70.5 age calculation properly?

2020 TurboTax presently has a bug the prevents it from asking the necessary question for those with birthdates between July 1, 1949 and June 30, 1950. As a workaround for this, with the CD/download version you can provide the QCD-amount information on the 1099-R in forms mode or in any version of TurboTax you can temporarily change your birthdate in TurboTax to something before July 1, 1949, edit the 1099-R form in TurboTax and answer the question asking how much was transferred to charity, then change your birthdate in TurboTax back to your actual birthdate.

This is due to TurboTax implementing the new IRA RMD age from 70 1/2 to 72, but overlooking that the 70 1/2 age for the QCD did not change. The TurboTax QCD question is tied to the RMD question so if you don't get the RMD question you will not get the QCD question either. This should be fixed in a future update - no telling when, but there is no downside to the workaround as long as the correct DOB is changed back after entering the QCD.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**