How do I enter my QCD?

[us71na]

our QCD reduces taxes on our distributions, where does it go on the forms

[leeloo]

Enter your 1099-R in the Retirment section. Enter through the screens until you arrive at the question about transferring to charity.

Can I make a QCD?

While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:

• You must be 70½ or older to be eligible to make a QCD.
• QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
• The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
• For a QCD to count towards your current year’s MRD, the funds must come out of your IRA by your MRD deadline, generally December 31.

 The Form 1099-R must have code 7, and the IRA/SEP/SIMPLE box must be marked.

[JohnW152]

In TurboTax Deluxe Online, 

1. Select the Federal dropdown in the left pane
2. Select Wages & Income
3. Select the Add my income button
4. Proceed through the interview until you arrive at the Your income page
5. Scroll down and select Start or Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
6. Select Add 1099-R

Once you enter the information from the relevant Form 1099-R, which reports the distribution, there'll be some follow-up questions.  One of those questions relates to whether the distribution was transferred to a qualified charitable organization.  You can indicate that all, part, or none of the distribution was transferred.  

On your actual Form 1040, line 4a will include the amount of your distribution, and line 4b will show any taxable amount ($0 if the entire distribution was transferred to the charitable organization) and the designation QCD will be shown on that line as well.

Please be aware that you can't claim a charitable contribution deduction for a QCD that's not included in your income.  Please see Qualified charitable distributions (QCDs) in IRS Publication 590-B  for more details.

[ssJacorD73]

I can't find QDC under my 1099 R when asked for reason for distribution.  Where and How on TurboTax do I designate my contribution I had sent directly non-profit as QCD.  It not when I enter the 1099-R information.

[ssJacorD73]

That is exactly the  problem,there is NOT a question asking if it was a QDC .  

[BrittanyS]

The questions for "I transferred all or part of this money directly to a charity" will only show up if your birthday reflects you are 70 1/2 for the tax year 1099 was received and the "IRS/SIMPLE/SEP" box is checked.  To verify the box is checked, follow these steps:

1. Click Wage & Income
2. Click Edit beside IRA, 401(k), Pensions Plan Withdrawals (1099-R)
3. Click Review beside 1099-R
4. Verify who the 1099-R belongs to
5. Verify payer and address information
6. Under Enter your 1099-R details from the Payer screen, verify if a check mark is in box IRS/Simple/SEP box
7. You will receive a message, Do any of these situations apply to you?  You will mark, I transferred all or part of this money to a charity

Here is a screenshot.

@ssJacorD73 

[lcatwell]

The response did not answer the question

[VolvoGirl]

If you are over 70 1/2 and enter a 1099R for a IRA distribution it will ask if it was a Qualified Charitable Distribution.  Be sure you check the little IRA box between boxes 7&8.  It will show up on the 1040 line 4b as 0 with the QCD by it.  Do not enter it again under Deductions.  

See the Online screen shots that employee MarilynG1 posted
https://ttlc.intuit.com/community/after-you-file/discussion/re-qcd/01/3186042#M732644

After you enter the 1099R keep going. One of the next screens will ask Transfer to Charity? Did you ask the Trustee to transfer all or part of this distribution of $5,000 to a qualified charitable organization?

Then do NOT enter it again under Deductions & Credits.

To qualify as a QCD, the distribution must have taken place DIRECTLY from the account trustee to the charity. It's ok for them to send you a check made out to the Charity that you then mail to the Charity. Withdrawing funds and then making your own contribution to a charity DOES NOT qualify as a QCD. If that was done, then you have a potentially taxable distribution and a potentially deductible charitable contribution.

[DoninGA]

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@lcatwell wrote:

The response did not answer the question

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You must be age 70 1/2 or older and you must have the distribution from an IRA for the QCD.

On the Form 1099-R in TurboTax you Must select the IRA/SEP/SIMPLE box so the the program can aske about a QCD.

To enter, edit or delete a form 1099-R -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

On the screen Did you get a 1099-R in 2023? Click on Yes

On the next screen click on Continue

On the screen Let's import your tax info Click on Change how I enter my form

On the screen How do you want to add your 1099‑R? Click on Type it in myself

On the screen Who gave you a 1099-R? select the type of 1099-R you received and Continue

[lcatwell]

In accounting for my distributions from my IRAs with 1090-R forms I can show how much were Qualified Charitable Distributions but it does not appear to ask for details on what Charities it went to and how much to each.  Is there any place that detailed information is to be recorded?

[VolvoGirl]

No you don't need to report that.  Just keep your records with your tax file if the IRS ever asks for it.