dmertz
Level 15

Retirement tax questions

Retired_CPA, this thread describes an entirely different problem.  In past years TurboTax mistakenly treated the decedent's age as a factor in qualifying to make a QCD from an inherited IRA.  However, the decedent's age is irrelevant to qualifying to make a QCD, only the beneficiary's age matters.  The bug described above was corrected several years ago.

 

If you had not reached age 70½ by the date of the distribution that was transferred to charity, the distribution does not qualify to be a QCD and instead must be included in taxable income and reported as an ordinary charitable deduction.

 

The bug in 2020 TurboTax has to do with the beneficiary's (your) age.  For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R16.1) has a bug the prevents it from asking the necessary question regard transfer of the distribution to charity. As a workaround for this, with the CD/download version you can provide the QCD-amount information on the 1099-R in forms mode or in any version of TurboTax you can temporarily change your birthdate in TurboTax to something before July 1, 1949, edit the 1099-R form in TurboTax and answer the question asking how much was transferred to charity, then change your birthdate back in TurboTax back to your actual birthdate.