How do I get Turbo Tax to recognize and deduct a QCD from an IRA distribution. All of the proper boxes are checked.

[rjs]

After you enter the Form 1099-R for the IRA distribution and proceed through the interview you will come to a screen that says "Do any of these situations apply to you?" If the IRA/SEP/SIMPLE box is checked on the 1099-R and you are over 70½ years old, one of the situations listed will be "I transferred all or part of this money directly to charity." Check the box for that situation and continue through the questions. You will come to a screen that asks how much the IRA custodian transferred directly to charity. Enter the amount of the QCD. It will be excluded from the taxable amount on Form 1040 line 4b and the QCD box will be checked on line 4c. The TurboTax screens do not use the term "QCD" until the screen after you enter the amount.

[CesarJ]

I just tried these steps and it worked for me. 

To have TurboTax recognize and deduct a Qualified Charitable Distribution (QCD) from your IRA distribution when the correct boxes are checked, ensure the following:

1. Enter Form 1099-R accurately: Input the distribution with the correct Box 7 code Y indicating a QCD.
2. Confirm QCD during interview: TurboTax will ask if part or all of the distribution was a QCD—confirm the amount donated.
3. QCD on Form 1040: TurboTax reports the full IRA distribution on Line 4a, but reduces the taxable amount on Line 4b by the QCD amount and labels it “QCD.”
4. Qualification rules: You must be age 70½ or older, donations must be made directly from the IRA trustee to a qualified charity, and the charity must be eligible under IRS rules.

If all this is done, the QCD amount is excluded from taxable income.

[VolvoGirl]

Why do you think it’s not recognizing the QCD?   If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form lines 4a and 4b and make sure it’s right. 

After you enter form 1099-R keep going.   If you have entered a birth date which makes you older than 70 1/2  there will be a page that asks Do any of these situations apply? Midway down is Were any of these funds sent directly to a charity?   Then it will ask for the amount.

The code in box 7 of form 1099-R must be 7 (or new code Y) and the little IRA/SEP/SIMPLE box must be checked.  A IRA QCD should be 0 taxable on 1040 line 4b and the QCD box checked.  Unless you have other 1099R taxable amounts on 4b.  You can’t do a QCD from a 401K.

A QCD is not reported as a deduction because a QCD is not included in taxable income to begin with.  When entered correctly, the QCD is excluded from the amount reported on Form 1040 line 4b.

For QCD there is a new checkbox on the 1040 line 4.   

4a is the amount of the IRA distribution.   

4b is the taxable amount.   

4c has 3 checkboxes.  Checkbox 2 is for QCD.   

[Jo_Andy]

For a QCD, there are 2 entries in box 7.  "7" , which means it is a normal distribution, AND "Y" which means it is a QCD.  When filling in the amount for the RMD only put in the portion that matches the total of line 1 and put the remainder in the other 1099R if less than the total RMD was contributed.  If less than the total required distribution was donated to charity, then there will be 2 1099Rs and the RMD should be split between the two so TT doesn't think you were under and slap you with a penalty, and if you put the full amount in both 1099Rs, TT will double it and your tax due as well.  TT needs to work on this section!!! as well as 4 other sections

[Tenmileblues]

Yes, this worked -- Thank you!