@geichelb1 wrote:
I don't really care if it is a "marketing ploy"! I "subscribe" to getting TT every year, I don't know, care or pay attention to what other tax programs are doing. They could simply send a businesslike email saying they will make the software available, and charge us for it, when the IRS has completed their work.
Rather than a marketing ploy (no benefit to me), they use their announcement that TT is "ready" as a reason to charge the credit card. I strongly suspect that the version they first make available has only superficial changes from the prior year...but hey, it's worth nearly $100.00 to them whenever they want to say it is "sold".
I will be interested to see if "QCDs" are computed properly this year. I just finished explaining to the IRS that I filled in the taxable/not taxable entries on a 2018 1099 exactly per the TT instructions and entered the amount on the bottom line (QCD) of the 1099-R. Rather than deduct the QCD amount from taxable income as I assumed, apparently TT simply ignored that entry making AGI and everything else too high.
TurboTax handled the QCD properly in both 2018 and 2019 if you entered it in the correct place. There is no. change to the QCD part in 2020.
On your 2018 tax return was the line 4b the 4a amount minus the QCD amount with "QCD" written next to line 4b? You said the "bottom part of the 1099-R" - did you try to enter it directly on the forms in the forms mode? The forms mode is not guaranteed for accuracy and voids the accuracy guarantee because it depends on user knowledge to properly link forms that the interview does for you. The forms mode is intended for trouble shooting, not data entry.
The retirement interview is not complete because the necessary forms have not been released by the IRS yet. There are many new and change forms for 2020 because Congress made many tax law changes. The new 8915-E form that must be incorporate in the interview has not even passed the draft state at the IRS so expect delays for the 1099-R section.
Qualified charitable distributions.
A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.
If you are 70 1/2 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.
The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
**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.**
