QCD

[egavasm]

My 1099R was auto uploaded to the turbotax.  My institution does not record the QCD on their forms even though they acknowledge making the payment and say that it is my responsibility to report it.  How do I report it on turbotax?   Am I supposed to change the figures they report?  I have not found any way on TurboTax to make the report.

[VolvoGirl]

You fill out the 1099R exactly as shown. For 2025 there might be a new code Y on the 1099R for QCD. The IRS does not require financial institutions to use code Y to report QCDs yet, instead making the use of code Y optional. I got my 1099R from Vanguard for my QCD and it only had code 7 in box 7.

If you are over 70 1/2 then after you enter the 1099R keep going though the followup questions.   There is a screen for common situations.  QCD is in the list.  TurboTax will ask you if any portion of your distribution was transferred to charity. You can then enter the amount transferred to charity.

[Bsch4477]

Delete the 1099 and enter it manually to get the prompt to say what part of the 1099 is QCD. 

[egavasm]

Your answer is only half right.  The problem is that when you do a download of information directly from the institution then Turbo Tax does not ask the question about the charitable donation because the institution is not required to put the code in on the form they send this year nor are they required to confirm that the charity is a 503C which is why they just indicate that it is all normal distribution and taxable when it is not.  The program does not ask if part was a direct charitable contribution. The problem is further complicated when doing your state taxes because even if you put the information manually on the federal return and turbo tax asks if part was a QCD and thus do not pay federal tax on the charitable contribution the state return only looks at the form from the IRA administer and misses that a portion was a charitable gift from an IRA that is not taxable.  You end up paying tax on the QCD to the state.

[DoninGA]

@egavasm If you are age 70 1/2 or older and the distribution was from an IRA and you checked the box on the TurboTax Form 1099-R, IRA/SEP/SIMPLE and box 7 has a 7 entered, after completing entry of the 1099-R there will be a series of screens asking various questions.

On the screen Do any of these situations apply to you? check the box labeled I transferred all or part of this money directly to charity and continue.

[VolvoGirl]

After you import the 1099R you have to go though all the follow up questions.  I don't know how that works if you import it.  You may have to edit or review the 1099R to get the rest of the questions.  

One thing to know is if you go back to edit or view a 1099R entry it resets all the answers to the default and you need to go though ALL the questions again all the way to the very end of the retirement section, keep continuing. They are right unless you go back.