QCD

Forum|Forum|5 years ago
February 3, 2021
4 replies
1 view

It appears that Turbo Tax does not allow someone born in 1949 to take a QCD. If you were born in 1949 you would turn 70.5 in 2020. If you make a QCD after you turned 70.5 in 2020 then you qualify for the deduction. However, Turbo Tax does not ask if some of the distribution was a QDC. If you change your birth year to 1948 then go back to the 1099 entry you are asked if part of the distribution was QDC. Then if you back and change you birth year to 1949 and leave your 1099 entry alone the QDC shows on the Form 1040.

This is an obvious error in the software and Turbo Tax should fix it!

macuser_22

Alumni - Champ

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.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

LRH2020

Level 2

I did the date change in my 1949 birthday and it worked perfectly. Thanks for the workaround to this QCD bug.

Yes, I remembered to go back and change my birthdate to the correct year, 1949.

SteamTrain

Level 15

Yes...this is a known big and TTX will fix it ... we users just don't know where it is on their list of things to fix.

You can check on Fridays...since most software updates come on Wed or Thurs evenings It's useless to check on other days...(with a few exceptions for massive foul-up fixes).

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-qualified-charitable-distribution/01/1845478/highlight/true#M173037

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

mdolan8608

Level 2

I went and changed my birthday and entered my 1099R and got the question about QCD and it worked perfectly. I then went back and changed my birthday back. I called turbotax on Saturday and talked to 2 different people. One hung up on me and the other said that he would get back to me yesterday. I told him that I thought that there was a bug in the program that needed to be fixed and he said he did not think so. Any way thank you for all the help.

macuser_22

Alumni - Champ

@mdolan8608 wrote:

I went and changed my birthday and entered my 1099R and got the question about QCD and it worked perfectly. I then went back and changed my birthday back. I called turbotax on Saturday and talked to 2 different people. One hung up on me and the other said that he would get back to me yesterday. I told him that I thought that there was a bug in the program that needed to be fixed and he said he did not think so. Any way thank you for all the help.

The TurboTax developers are aware of the bug and it will be fixed in a future update - not known when.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

fishing4fun

Level 2

CAUTION the workaround may not work. In my case, the QCD workaround for my IRA QCD withdrawal became my taxable amount, my other IRA withdrawal was ignored and my wife's (she is older in does not fall into the TurboTax error) QCD IRA was ignored as well. Prior to attempting the workaround, TurboTax recognized all three withdrawals, treated my wife's QCD accurately, included my normal IRA withdrawal, but of course, did not allow my QCD because of the error. Best on my experience, I would not recommend the workaround.

rwright12379

Level 2

I called TurboTax 2 weeks ago. It is wrong that they have not made this a priority. This is a problem for a lot of people. IF not fixed, it will cost me $2600. Does anyone know if Tax Act or other software has figured this out?

dmertz

Level 15

The workaround provided above is sufficient to allow you to use TurboTax to file an accurate tax return with regard to QCDs, so failure of TurboTax to fix this bug in a timely fashion will not cost you $2,600.

67walkon

Level 2

I spent an hour and 15 minutes on the phone with the turbo tax expert. She was unaware of this issue and it took an hour and failed attempts by her supervisor to get them to understand it. She did finally get it and is trying to push it upstairs.

The answer right now is to wait until they figure out a software update or to just try to do it manually on the forms. That would mean mailing it in instead of e filing.

I may ask for a refund.