I turned 70 1/2 in mid November 2021 so am eligible to make a QCD from my Fidelity non-inherited managed IRA - and did so after that in 2021. My 1099-R came yesterday and the amount of the distribution was the same in Box 1 (gross distribution) and Box 2a (taxable distribution). (Fidelity told me - in two different calls - that that is the way their agent, National Financial Services, does it and it is up to me to determine/report the actual taxable distribution amount since a QCD is not taxable if the rules are followed, which I did.) So I have enter the same amount in the corresponding boxes (1 and 2a) in Turbo Tax for that IRA. Box 2b (taxable amount not determined) was also checked on the 1099-R so I checked that box in Turbo Tax for that IRA. But that meant I would be taxed on part of a distribution which was a QCD. How do I offset that? Fidelity said to simply indicate the recipient organization and amount of the charitable distribution in the charitable section of Schedule A in Turbo Tax. Did that.
Here's the issue (problem?): we file "married jointly" and routinely qualify for the Standard Deduction anyway this the so called charitable gift entered into Turbo Tax's Schedule A has no impact on reducing our tax liability. The result: we are being taxed on a QCD for which we did not withhold any amount for federal tax purposes nor can I find any effective way in Turbo Tax to offset that distribution and thus effect our tax liability. What am I missing?? Help! From a longtime satisfied Turbo Tax user
