How do you enter a qualified charitable distribution in Turbo Tax? I have looked a prior answers which don't match up with how the 1099-R form works. Please help.

[secondtimothy]

Well you got me on that one. Thanks. 

I was trying to change the numbers on the 1040 the entry on 4a.  Since the actual 1099R does not address either RMD or QCD, looking at the 1099R form was no help.  It never occurred to me that TurboTax would have fill able sections in the 1099R that are apparently from their worksheets incorporated in the form.  I did find the lines you reference.  It was not easy as the form has 6 screens to scroll through from top to bottom and the actual area of interest is stuck between insurance and nonstandard 1099R.  But if you look hard enough, it is there.  So I have to give you a like on that one.

[WearyTaxee]

I was 70 1/2 in July of 2020.  Because of the CARES act, I was not required to take an RMD in 2020, but chose to take a Qualified Charitable Distribution in November in light of the additional needs imposed on charitable organizations due to COVID-19.  My financial advisor checked the IRS rules and said that I could take a Qualified Charitable Distribution for the 2020 since I was 70 1/2, but using TurboTax Delux 2020 with the latest updates, there is no prompt to designate this distribution as a QCD.  Please advise.

[macuser_22]

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@WearyTaxee wrote:

I was 70 1/2 in July of 2020.  Because of the CARES act, I was not required to take an RMD in 2020, but chose to take a Qualified Charitable Distribution in November in light of the additional needs imposed on charitable organizations due to COVID-19.  My financial advisor checked the IRS rules and said that I could take a Qualified Charitable Distribution for the 2020 since I was 70 1/2, but using TurboTax Delux 2020 with the latest updates, there is no prompt to designate this distribution as a QCD.  Please advise.

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Answered in my post above that explains the bug and workaround - scroll back.

[WearyTaxee]

I should have searched further before posting this question.  It is answered here by dmertz:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-qualified-charitable-distribu...

Solution worked perfectly for me!

[quijibo444]

That answer was posted mid-2019.   It's not behaving like that now.  How do I do this in 2021?  I working with a 1099-R that has an IRA/SEP/SIMPLE check, covering a withdrawal, a Roth conversion, and QCD ($$ amounts are all added together).  

Thanks,  Tom.

[SamS1]

@macuser_22 Did a wonderful example of this type of situation whereby segregating the 1099R into multiple 1099Rs to deal with different pieces.  In other words although you received 11099R, you will enter 3 1099Rs equaling the total of the one for each situation.  

Click Here for a link that will help

[quijibo444]

Back to my QCD issue.   When I enter the info for the QCD 1099-R, it doesn't ask about QCD.  It treats the 1099 as distributed money not taxed.  I can see the impact on the totals.

It happily moves on to the next 1099.

I'm running the on-line system, not from an installed version on my own system.  Does that make a difference?

Thanks,

Tom 

[quijibo444]

That line does not show on my screen.  There is no place to enter numbers.  Just asks a few questions which are obviously "No" in this matter.   Never even uses the term "QCD".

You must be talking about screens that I don't see/get.

Tom

[quijibo444]

I'm using the term on-line to mean that I logged into the TT system and filled out the forms.   I do not have a local copy of the software that is running the data input and processing.

It's just not there when I try to enter the data.

Tom

[quijibo444]

So, Tim,

Have they fixed this or is there a workaround?  I can't get QCD to show anywhere I can get to.  And, give the social climate, we did quite a bit of QCD-ing and would really like to not have to pay taxes on that.

Tom

[quijibo444]

Ok, I'll bite.   How do you change to "forms view"?

Tom

[disabato05]

Only way to get QCD to come up is to change your age to over 72.  Then it comes up.  Once have correct info on QCD in Turbo Tax, go ahead and put your correct age in (70 1/2 to 72) again.  That is the only way we could get around it.  As far as I know, Turbo Tax has not corrected this bug for people aged 70 1/2 to 72 to report their QCD.

[macuser_22]

As I posted above, this will be fixed in a future update.  That will probably be a while and I do not think it will be before the CARES Act retirement provisions will be implement since they both make major changed to the same 1099-R interview and could conflict with each other.

2020 TurboTax presently has a bug the prevents it from asking the necessary question for those with birthdates between July 1, 1949 and June 30, 1950. 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 in TurboTax back to your actual birthdate.

This is due to TurboTax implementing the new IRA RMD age from 70 1/2 to 72, but overlooking that the 70 1/2 age for the QCD did not change. The TurboTax QCD question is tied to the RMD question so if you don't get the RMD question you will not get the QCD question either. This should be fixed in a future update - no telling when, but there is no downside to the workaround as long as the correct DOB is changed back after entering the QCD.

[67walkon]

Here's a twist to the work around of changing your birthdate.  I did that, and changed it to a date prior to my real birth date.  Turbo Tax allowed me to enter the QCD info.  I checked the propsed Turbo Tax return and it does show it as a QCD.

The 1040-SR shows the taxable amount of the QCD as 0.  So it seems the software got that right.

HOWEVER, the amount of the QCD is still shown as  part of the itemized deductions, which doesn't make sense.  It might be a glitch in the work around of changing your birth date.

It matters because with the QCD included, my itemized deductions are greater than the standardized deduction by over $4,000.  The QCD is not treated as taxable income, but the amount of the QCD is treated as an itemized deduction.  Isn't that wrong?  It seems like I should have to  pay income tax on the $4,000.

Here's how it looks on the 1040:

Adjusted gross income (not including the amount of the QCD):           $x

Itemized deductions (including the amount of the QCD):                        $32,000 (as an example)

Taxable income:                                                                                                 $x-$32,000

If the QCD was $15,000, and the remaining deductions were $17,000 shouldn't my itemized deductions then be less than the standard deduction of $27,400 or whatever it is.  I believe I should be taxed on the difference between $32,000 and $27,400.  But Turbo Tax isn't doing it that way.

What am I missing?

[jdhenn]

If you are the IRA participant, for TurboTax to ask if any portion of your distribution was transferred to charity, your birthdate entered into TurboTax must indicate that you were at least age 70½ by the end of the tax year, the Form 1099-R must have code 7, and the IRA/SEP/SIMPLE box must be marked. I turned 70 1/2 in 2020 but I was not directed to the follow up questions regarding the QCD. Is there a flaw in the Turbo Tax program?