I took an RMD from a SEP IRA which I asked the fiduciary to direct to a qualaified charity.
On the Turbo Tax 1099R form I indi cated that the distribution was made directly to a
charity. But, TT will NOT recognize this as a charitable contribution and is including the amount in my taxable income.
I tried getting an answer online but the specialist said (incorrectly) that QCDs cannot be made from Sep IRAs; that is only correct for active Seps. Mine is inactive -
I have no idea how to solve this using the TT software which is worse this year than it ever has been.
There is no question that TurboTax asks during the entry of the Form 1099-R that indicates whether or not the distribution is from a SEP IRA, so there is no way for TurboTax to block the reporting of a QCD from a SEP IRA.
If your personal information indicates that you were age 70½ or over during the tax year and the Form 1099-R that you received from the payer has code 7 (or code 4 if the distribution is from an inherited IRA) in box 7 and the IRA/SEP/SIMPLE box marked, in the online version of TurboTax TurboTax will provide a checkbox on the Do any of these situations apply to you? page for you to mark to indicate that some or all of the distribution was made as a QCD. In the CD/download version of TurboTax TurboTax will explicitly ask if any was paid to a charity.