RMD and QCD

[Fotoman1]

The company that administers my IRA and the RMD this year gave me two 1099 R's.  One for the RMD and the other for the QCD.  When I import them into TurboTax it treats it as though I didn't provide the correct payment for my RMD and signifies that I have to pay a $437.00 penalty.

This is the first time the admins have done it this way and I'm wondering if this is normal and if there is a workaround for it? 

[Mike9241 · Accepted solution]

That was dumb of them since only 1 1099-R was required. On the first 1099-R, you indicate that the box 1 amount was an RMD and that the entire gross amount applies to the RMD. Do the same with the QCD, but indicate the amount of the QCD. The totals of box 1 for both should equal the RMD for the year.

The other workaround would be to combine the amounts in each box on the two so there would be only 1-1099-R in Turbotax.

[Fotoman1]

Got it.  Thank you very much!

[Sasha07TTid]

I had made a QCD for part of my RMD and took the rest for personal use. I received two 1099 R. Due to miscalculation on my part, I have a shortfall in my RMD (which I noticed in Feb 2026 and corrected; those funds went to charity). I entered the data manually and every entry is accurate. I had to enter my husband's also. Now the software is adding my QCD to my shortfall and that has literally doubled the penalty etc. I have deleted the entries and reentered them multiple times; the same error keeps appearing. None of the tech support people know how to fix this. Any suggestions? Thank you 

[Sasha07TTid]

The suggested workaround will correct the miscalculation of missing QCD; but I am afraid it will invite an audit since the IRS screening AI will be looking for two 1099 R and if it sees only one, it will invite an auditor to look over. It can be explained but it is just more hassle.