Missing Information for a QCD on Form 5329

[CJP5]

Form 5329 should include information on qualified charitable donations (QCDs) from an IRA. Although Line 4a on my 1040 shows a difference between the RMD amount and the taxable amount due to a QCD, the QCD information is not transferred to Form 5329. As a result, Turbotax shows incorrectly that I need to pay tax on the QCD amount. This problem did not occur in TT 2023. It needs to be fixed for TT 2024.

[DanaB27]

If you show a penalty on Form 5329 then you need to review your RMD answers. You will need to indicate that the QCD was part of your RMD.  You are not required to file Form 5329 if you met all of your RMD for 2024. TurboTax will enter the information in the "Additional Retirement Account Smart Worksheet" to check that you met the RMD but this will not be sent to the IRS.

Please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. On the "Do any of these situations apply to you?" screen select "I transferred all or part of this money directly to charity"
5. Continue until "How much of the $XXXXX was a RMD?" screen and select "The entire distribution was an RMD"  /or select "Only part of this distribution was a RMD" and enter the amount of RMD (if this distribution includes RMD for other IRA accounts then you included the amount here. Also include the QCD)
6. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
7. Enter how much your transferred to charity
8. On the "Review your 1099-R info" screen click "Continue"
9. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

In TurboTax Desktop:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Answer the "Transfer to Charity Screen"
6. On the "Your 1099-R Entries" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

If you have multiple IRAs but took the total RMD only from one IRA then select "An IRA..." on the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..." and click "Continue". On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

Please see Can an account owner just take a RMD from one account for additional information.