Taxpayers age 70 ½ or older can make a qualified charitable distribution, up to $100,000, directly from their IRA, other than a SEP or SIMPLE IRA, to a qualified charitable organization. It's generally a nontaxable distribution made by the IRA trustee directly to a charitable organization.
The question about a QCD (Qualified Charitable Distribution) is asked as part of the 1099-R interview, that is, after you enter your 1099-R AND if your distribution is from an IRA, then you may be asked the question about QCD.
Unless you are at least 70 1/2 (and therefore eligible to make a QCD), TurboTax won't even ask you the question, because you couldn't answer YES anyway.
To report a QCD in TurboTax:
1. Enter the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R).
2. In the follow-up indicate that some or all of the distribution was transferred to charity. TurboTax will include the entire amount on Form 1040. TurboTax will include the notation "QCD" next to the line.
This is what the IRS guidance says for 2022 tax returns:
A 2022 QCD must be reported on the 2022 federal income tax return, normally filed during the 2023 tax filing season.
In early 2023, the IRA owner will receive Form 1099-R from their IRA trustee that shows any IRA distributions made during calendar year 2022, including both regular distributions and QCDs.
The total distribution is in Box 1 on that form.
There is no special code for a QCD.
Like other IRA distributions, QCDs are shown on Line 4 of Form 1040 or Form 1040-SR. If part or all of an IRA distribution is a QCD, enter the total amount of the IRA distribution on Line 4a. This is the amount shown in Box 1 on Form 1099-R.
Then, if the full amount of the distribution is a QCD, enter 0 on Line 4b. If only part of it is a QCD, the remaining taxable portion is normally entered on Line 4b.
Either way, be sure to enter "QCD" next to Line 4b. Further details will be in the final instructions to the 2022 Form 1040.
Click here for IRS guidance on QCD's.
Click here for TurboTax guidance on QCD's.
If you have issues with this entry you can contact TurboTax. Click here for information on Turbo Tax Support.
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