If you are referring to making a Qualified Charitable Distribution (QCD) from your IRA, there is a provision within TurboTax to take care of this.
TurboTax will take your age into account and determine if you qualify to make a QCD. After you enter the information from your Form 1099-R which reports the distribution there will be some follow-up questions. One of those questions will be if the distribution was transferred to a qualified charitable organization. You can choose either all, part, or none of the distribution was transferred. This will take care of reporting the distribution correctly on your return.
Then, on your actual Form 1040, line 15a will include the amount of your distribution and line 15b will show any taxable amount ($0 if the entire distribution was transferred to the charitable organization) and the designation QCD will be shown on that line as well.
Since you are not being taxed on the distribution that was transferred to the charity, you cannot also claim a deduction on Schedule A.
To go directly to the section of your return to enter your Form 1099-R, use these steps:
Note: For 2019, the IRA distribution will be shown on Form 1040 line 4a and 4b.
[Edited 3/10/2020 | 8:34 am PST]
If you are referring to making a Qualified Charitable Distribution (QCD) from your IRA, there is a provision within TurboTax to take care of this.
TurboTax will take your age into account and determine if you qualify to make a QCD. After you enter the information from your Form 1099-R which reports the distribution there will be some follow-up questions. One of those questions will be if the distribution was transferred to a qualified charitable organization. You can choose either all, part, or none of the distribution was transferred. This will take care of reporting the distribution correctly on your return.
Then, on your actual Form 1040, line 15a will include the amount of your distribution and line 15b will show any taxable amount ($0 if the entire distribution was transferred to the charitable organization) and the designation QCD will be shown on that line as well.
Since you are not being taxed on the distribution that was transferred to the charity, you cannot also claim a deduction on Schedule A.
To go directly to the section of your return to enter your Form 1099-R, use these steps:
Note: For 2019, the IRA distribution will be shown on Form 1040 line 4a and 4b.
[Edited 3/10/2020 | 8:34 am PST]
My wife was 70 1/2 in 2020. She made a qualified charitable distribution from her IRA. There is no followup question asking if any portion of the distribution is a QCD. How do I get to the question?
@MKCDAC wrote:
My wife was 70 1/2 in 2020. She made a qualified charitable distribution from her IRA. There is no followup question asking if any portion of the distribution is a QCD. How do I get to the question?
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.
Thanks so much for this explanation. I read lots of suggestions that didn't apply and was delighted when this one worked. I changed my birthday, re-entered the 1099R, got the questions, then changed my birthday back to proper.
any update on the code fix for those that turned 70 1/2 in 2020 and had a QCD
It's been reported elsewhere on this forum that this problem is still being investigated. Given that there is a viable workaround, I would expect that the developers are giving higher priority to fixes for other items.
My turbo tax did not direct me to the Charitable Contributions questions. I was 71 last year.
Qualified charitable distributions.
A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.
If you are 72 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.
f you are 70 1/2 or older, it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.
The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
My birthday is June 1943 and it is not giving me the question. What should I do ?
@Archmom wrote:
My birthday is June 1943 and it is not giving me the question. What should I do ?
Did you check the box IRA/SEP/SIMPLE?
This work around does not always work! I am 77 and I am not getting the question even if, I do or do not change the date. I also worked with a TurboTax person and we could not get it to work. Turbotax is still figuring it out.
This is the first year I qualify for QCD but TurboTax did not ask if any of my distribution was a QCD as explained below. How do I get this entered properly?
I had the same problem last year. Although actual date of birth is in July, I had to make it June 30. I think the program has a problem with the age 70 and a half calculation.
The Qualified Charitable contribution (QCD) only comes from an IRA or an inactive SEP or Simple Plan. Therefore the usual oversight is when entering your 1099R the box 7 "IRA/SEP/Simple" box should be checked.
Once that box is checked, and assuming your age on your return indicates age 701/2 or higher, and after entering the 1099-R form information, you will arrive at a page titled "Do any of these situations apply to you?"
On that page you will find/select "I transferred all or part of this money to a charity." On the next page you will enter the amount.
Tip: You may need to delete the form 1099R and re-enter the form information in TurboTax.
For more information see this IRS FAQ or IRS Publication 590.
@MKCDAC wrote:
I had the same problem last year. Although actual date of birth is in July, I had to make it June 30. I think the program has a problem with the age 70 and a half calculation.
Yes, I have confirmed the bug and submitted it to the moderators to give to the developers. It seems that they chanced the program to allow the QCD for age 72 but overlooked the half year between 70 1/2 and 72.
However, it you had the problem last year then you are a year older in 2021 so you should now be 72 which works fine.
I made a Charitable distribution directly to a 401 3(c) in December 2021 from my TSA. I turned 70.5 in May of 21. How do I enter this 1099R in Turbo Tax. The program does not have an option for explaining that this amount is tax exempt.
Followup: Workaround: changed the DOB to make taxpayer over 72 and entered the QDC which now Turbo Tax has a popup menu and noted that item was tax exempt. I then went back and entered the correct DOB that reflects 70 1/2.
@lomprey2016 Qualified charitable distributions (QCD) can only be made from individual retirement accounts (IRAs).
You can transfer money from a 403(b) to an IRA and then make a QCD.
Another option is to make a charitable contribution after withdrawing money and entering the amount in Deductions & Credits.
The glitch in TT in this regard with my situation (and others Im sure) is this; I am not 72. However, I am the owner of a beneficial IRA account that requires me to take RMDs each year since the original holder was way past 72 and had been taking RDMs for years.
Both my financial advisor and tax advisor told me that I could make QCD with those RMDs and I have done so for the past 3 years.
Quicken's test is just my age. If I am not 72, then I can not be asked the QCD questions. The only way for me to do it is to take them, and since they show as a fault, I have to print and mail my returns. A giant pain and slow.
Has this glitch been fixed for 2023?
Although TurboTax had problems with this in the past, the CD/download version of TurboTax has handled this correctly in the 2020, 2021 and 2022 versions of TurboTax. It's unlikely that the developers will have broken this in 2023 TurboTax.
I must respectfully disagree. Those are the years that the problem existed for me. I was just hoping there was a difference this year.
@reg66 , perhaps I misunderstood your situation. To be eligible to make a QCD from the inherited IRA maintained for your benefit, you must be age 70½ or over. The age of the decedent is not a factor.
If on past tax returns you reported making QCDs from the inherited IRA but you were not age 70½ or over at the time of the distribution, you must amend those tax returns to remove the QCD claim and instead report the distributions as ordinary distributions and claim the charitable contributions as ordinary charitable contributions. (However, keep in mind the statute of limitations on the IRS's ability to make an assessment of taxes, either 3 years or 6 years depending on the amount.)
Prior to the developers correcting TurboTax's behavior in 2020, TurboTax mistakenly based eligibility to make a QCD on the age of the decedent instead of on the age of the beneficiary. If those prior versions of TurboTax allowed you to report these distributions as QCDs, perhaps this mislead you to mistakenly believe that eligibility to make a QCD was based on the age of the decedent.