How do you adjust (IRA/SEP/SIMPLE) 1099-R box 2a (2b has X) to show impact of qualified distributions(over 70.5 years age) which are ~53% of gross dist.?

[screwloose]

I have a SEP/SIMPLE IRA. It shows gross distributions of $X. Box 2a shows the same amount. Box 2b has an "X" in it because about 53% of Box 1 amount are actually "Qualified Distributions" that I'm allowed to make to non-profit organizations as I am over 70.5 years of age. These distributions did not come to me and I should not have to pay tax on them. What forms do I additionally need to make this correction?

[Critter]

Go back and remove the entry in box 2b ... leave that entry box BLANK then continue thru all the following screens to indicate how much was a QCD.

[screwloose]

Thank you, very helpful!

[dmertz · Accepted solution]

The Form 1099-R that you received from the payer is correctly prepared.  Enter it exactly as received.  Since this is a distribution from an IRA, make sure that you have marked the IRA/SEP/SIMPLE box on TurboTax's 1099-R form.  Provided that you were age 70½ or older in 2017, in the follow-up TurboTax will ask if you had any of this distribution transferred to charity.  Indicate Yes, then enter the amount.  TurboTax will include the gross amount of the distribution on Form 1040 line 15a or Form 1040A line 11a but will exclude the amount transferred to charity from the amount reported on line 15b or 11b.  TurboTax will include the notation "QCD" next to this line.

[dmertz]

Also, box 2b Taxable amount not determined is *required* to be marked for any regular distribution from a traditional IRA.  The fact that it has been marked has nothing to do with the QCD.  There is no way for the payer to indicate on a Form 1099-R that any part of the distribution was a QCD and, in fact, the payer has no way to know if the amount transferred to charity actually qualifies as a QCD, so reporting it as a QCD is entirely the responsibility of the taxpayer.  The payer is required to prepare the Form 1099-R the same whether any portion was a QCD or not.