I am over 70.5 and made charitable contributions as a part of my RMD from an IRA. How do I show this in TurboTax?

[kratzeron]

IRS does not tie QCD to MRD. IRS requires age 70-1/2, but it does not have to come out of MRD. When the tax law changed it only affected MRD, not the QCD.

TT does not account for this properly. From the IRA screen, it will not go to questions about QCD. I changed my birth year (looks like I'm 72), and then it will work.

TT needs to correct this in Step-by-Step and forms.

[macuser_22]

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@kratzeron wrote:

IRS does not tie QCD to MRD. IRS requires age 70-1/2, but it does not have to come out of MRD. When the tax law changed it only affected MRD, not the QCD.

TT does not account for this properly. From the IRA screen, it will not go to questions about QCD. I changed my birth year (looks like I'm 72), and then it will work.

TT needs to correct this in Step-by-Step and forms.

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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.

[kratzeron]

Thank you for the update.

I tried a workaround...

I went back to Personal Info and changed my birth date so I would appear to be 72.

I deleted Form 1099-R; Then created a new one with same information.

This worked... I was able to get to the right questions about RMD and QCD and amounts.

I checked NO RMD; Part of distribution went charity (QCD); Entered $amount... continue...

Then I went back and changed my birth date so I'm young 71 again. 🙂

I checked through forms at my correct age and everything looks good.

* I still prefer having TT fix it. 🙂

[kratzeron]

I'm new at this... I just saw that there are similar posts from 3 weeks ago and with the same change the birth date temp fix. Sigh... I thought I had come up with a new idea.

I am concerned though. I called the TT help desk yesterday, and they didn't know about this problem.??

Does TT Tech Support actually follow up on problems?

[deprabbit]

Changing my birth date by one year 1o 1948 worked great.  I changed it back to 1949.  This is a problem that Turbo Tax should fix 

[SweetieJean]

Just a note to all of you posting (or reading) here: Some states do not recognize QCD's, so you may still owe state taxes.

[sammyfrommiami]

This tweak worked for my for tax year 2021.  Same situation, just a year later.

After I changed my birth year, I was asked the questions about QCD to charities.

I then changed my birth year back to the actual year.  TurboTax did NOT roll back the QCD.

We will see what happens when I run the Review.  (Nothing was flagged as the final TurboTax for 2021 has not been release).