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.

[macuser_22]

@jdhenn Yes.  It has been discussed before in this thread - here it is again - and contrary to the previous post, this does NOT put the QCD as an itemized deduction.    The ONLY thing this does is get TurboTax to ask the question.    DOB has NOTHING to do with itemized deductions.

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.

[CowboyFrankie]

There is a flaw, and it's been reported but not corrected as far as I know.  If you're using the CD or download version, go to Forms view and navigate down to the appropriate 1099-R worksheet.  Open the form and enter the total QCD amount in the QCD block of the worksheet.  This will decrement the QCD distribution amount  from the taxable IRA distribution amount in block 4b of the 1040SR and put a "QCD" annotation on that line of the 1040SR.

I hear tell that if you're using the online version of the software, you need to change your date of birth a couple of years back to get the software to take you through the RMD and QCD routine - since the tax code changed to increase the RMD age to 72.  Once you get the data entered, you change your DOB back to the correct date

[ggamota]

I want to enter my charitable distribution made directly by my trustee . I went to the form and I get a pint slot. No change on taxes due

[BillM223]

First, did you get a 1099-R (I assume you did, but I need to ask).

Second, what is a "pink slot" and where did you get it?

Third, I would not expect a change in taxes due. The income that appears to be added by the 1099-R is excluded because it is a QCD. So even though you enter the 1099-R, your taxable income does not change. Or did you mean something else?

@ggamota

[forrest4]

Clever.  I tried this (after more rational approaches didn't work) but it did NOT work for TurboTax for tax year 2021, which became available the first weeks in December 2021.

TurboTax still has problems with QCD.  This has been around for years.  One would think that they would get it right.

[Critter-3]

You must wait until after the first and then revisit this section when you have the 1099-R in hand.  The glitch from  last year with the age change from 70.5 to 72 was an issue for a few in the early versions but got corrected later. 

[scantine24]

One suggestion on another thread said to change your birthday to before July 1 1949 and then you get the charity questions. After you enter it, you can go back and change the birthday to the correct date. Some glitch in the program

[S1P]

1099-R Code = 4, since this is an inherited 401K.  When I enter code 4, Turbo Tax doesn't ask the question about RMD.  When I changed the Code to 7 (just to see what would happen), the RMD questions appear.  How do I indicate in TurboTax that this Code 4 1099-R is for RMD?

Thanks.

@Critter 

[SweetieJean]

An IRA beneficiary can do a qualified charitable distribution (QCD).  However, to be eligible, the beneficiary must be age 70 ½ or older.  If you are not old enough to do a QCD, your distribution would be treated as taxable.

[WALLACE S NATHAN]

I KEEP LOOKING, BUT CAN'T FIND WHERE OR HOW TO ENTER MY QCD.  IT WORKED LAST YEAR, BUT I CAN'T SEEM TO FIND IT THIS YEAR.

[WALLACE S NATHAN]

MANY THANKS!!!

[jethrojoseph]

How do you enter a qualified charitable distribution in Turbo Tax?

[ColeenD3]

Enter your 1099-R as you normally would. Say that you did take your RMD. 

Be sure that the distribution is from an IRA and that the IRA box is checked in the program. As you continue in the interview section, you will encounter the screen.

As you continue with the interview screens, you will be asked if you donated a portion or all of the distribution to charity. There are eligibility requirements. TurboTax will exclude this amount and will show the notation QCD.

You have to continue through the interview screen by screen. The screen that asks whether you transferred any of the distribution to charity doesn't say "QCD," but that's what it's about. If you answer that you transferred part of the distribution to charity, the next screen will ask you how much was transferred to charity. The next screen after that will tell you that the amount you specified is designated as a QCD. That last confirmation screen is the only place where you will actually see the term QCD.

A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your minimum required distributions (MRDs) for the year, as long as certain rules are met.

In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.

Can I make a QCD?

While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:

• You must be 70½ or older to be eligible to make a QCD.
• QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
• The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
• For a QCD to count towards your current year’s MRD, the funds must come out of your IRA by your MRD deadline, generally December 31.

@jethrojoseph

[macuser_22]

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@ColeenD3 wrote:

Enter your 1099-R as you normally would. Say that you did take your RMD. 

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FYI It should not be tied to the RMD question anymore.   For many RMD's start at age 72 now and QCD's can be taken after age 70 1/2 so there might not be any RMD question if over age 70 1/2 and under 72.

[dmcd1b]

for 2022 taxes Turbo Tax is not showing a screen to enter in my QCD's from my IRA