Form 5329 Mistake

[CJP5]

My Form 5329 incorrectly shows a Federal tax due for a qualified charitable distribution (QCD) from my IRA. The QCD is correctly interpreted on lines 4a and 4b of my 1040 (IRA distributions and taxable amounts) from information on Form 1099-R for my IRA. However, Form 5329 shows a Federal tax due on the QCD amount. This must result from a mistake by Turbotax.

[DanaB27]

To confirm you are showing are penalty on Form 5329 part IX. If yes, please review your entries. The QCD counts towards your RMD.

If you met all of your RMD for 2024 then you should not have a penalty on Form 5329 and you are not required to file Form 5329 . TurboTax will enter the information in the "Additional Retirement Account Smart Worksheet" to check that you met the RMD but this will not be sent to the IRS.
 

Please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. On the "Do any of these situations apply to you?" screen select "I transferred all or part of this money directly to charity"
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
6. Continue until "How much of this distribution applied to your December 31, 2024 RMD?" screen and select "The entire distribution was an RMD"  /or select "Only part of this distribution was a RMD" and enter the amount of RMD and include the QCD amount (if this distribution includes RMD for other IRA accounts then you included the amount here)
7. Enter how much your transferred to charity
8. On the "Here's your 1099-R info" screen click "Continue"
9. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024.

In TurboTax Desktop:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount and include the QCD amount (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Answer the "Transfer to Charity" screen
6. On the "Your 1099-R Entries" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024.