How do you enter an RMD which was distributed to Qualified Charatible Donation (QCD) in TurboTax, never see any question for QCD in the prompts?

[thamberg]

Entered the information in the 1099-R and walked thru the prompts, no place does it ask if this was a QCD - so how do I enter it in as a QCD?

[VolvoGirl]

I entered mine ok.  It was on the second screen after I enter the 1099R.  First screen asked Did  I inherit it.  Then the very next screen is Transfer to Charity?  If you are married, be sure  you are picking the right spouse for the 1099R.  Go back and Edit the 1099R and try again.

[dmertz · Accepted solution]

Was the recipient of the Form 1099-R over age 70½?  To be able to make a QCD the individual must be age 70½ or over.

Does the Form 1099-R have code 7 (or code 4 if it's an inherited IRA) in box 7 and the IRA/SEP/SIMPLE box marked?  QCDs can only be made from IRAs.

If all of the above conditions are satisfied, TurboTax will ask if some or all of the distribution was transferred to charity.

[thamberg]

Box 7 has a 4 in it and my 93 year old father, who passed away in Sept 2023.  He had not taken his RMD yet from the account.  We ended up having the RMD portion sent to an approved charity (QCD) directly from the account.  Turbotax asks the question of his age when he passed, but since I am not 70 1/2 yet, it seems to make no difference and treats the RMD fully as taxable income to me and not as a QCD.   

[dmertz · Accepted solution]

Since you have not yet reached age 70½, you are not eligible to make a QCD.  The age of your father is not a factor in determining whether or not you are eligible to make a QCD.  The distribution is taxable to you.  You can claim a deduction on Schedule A for a charitable contribution, but that's only beneficial if your itemized deductions exceed your standard deduction.

[thamberg]

I suspect the issues is due to the IRA that the RMD is coming from is an inheritied IRA which my 93 year old father had not taken is RMD from.  When answering the question in Turbotax it does ask if my father was born before 1950 (which he was) but then still treats the RMD which was sent directly to the QCD is being counted as income to me.   I suspect it may be due to I am not 70 1/2 yet.

[thamberg]

Thank you - I too have come to the conclusion its due to my age and is ignoring his age even though his account required and RMD.

[dmertz]

There is no dependency between RMDs and QCDs.  The confusion about that arose from the fact that they both used to use the same age threshold.