Okay, not sure if this is the correct way to do this. Here is what I did.
- I deleted the two 1099-Rs for the two QCDs entered. The RMD corrected to just 1X in the summary as expected.
- I edited the Fidelity 1099-R:
- Changed “Do any of these situations apply to you?” from None to “I transferred all or part of this money directly to charity”
- For the “How much of the $20,000* was an RMD?” I kept the Fidelity 1099-R just like I did in my original post; the RMD was S19,000*.
- For “How much did NATIONAL FINANCIAL SERVICES LLC” (aka Fidelity) “transfer directly to charity?” I added S5,000 which is the sum of the two QCDs. When I did that the Refund/Due amount adjusted as expected for a little less taxable income.
- The next screen says: “Part of your distribution is now tax free! $5,000.00 of your retirement distribution is now designated as a nontaxable Qualified Charitable Distribution (QCD). This is different than a charitable deduction. Since we claimed this here, you can’t also claim it as a charitable deduction later. “
This fixes the taxing. Not sure how I would I account for the specific charitable organizations. Maybe it is not necessary.
I will continue with rest of the return. Maybe somebody will chime in in the meantime.
*Not the actual values.
