Where to post on Form 1040 a contribution to a charity made directly by my IRA?

[AnnetteB]

If you are referring to making a Qualified Charitable Distribution (QCD) from your IRA, there is a provision within TurboTax to take care of this. 

TurboTax will take your age into account and determine if you qualify to make a QCD.  After you enter the information from your Form 1099-R which reports the distribution there will be some follow-up questions.  One of those questions will be if the distribution was transferred to a qualified charitable organization.  You can choose either all, part, or none of the distribution was transferred.  This will take care of reporting the distribution correctly on your return.  Be sure that the IRA/SEP/SIMPLE box is checked because the QCD is only available for distributions from an IRA.

To go directly to the section of your return to enter your Form 1099-R, use these steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “1099-r” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to 1099-r”

• Click on the blue “Jump to 1099-r” link and enter your information

Don't forget, since the distribution will not be included in your income, you do not also enter the amount as a charitable contribution. 

[SweetieJean]

Just be aware that some states do not recognize QCD's, so you may still owe state taxes.

[Papa Richard]

It is my understanding that I will pay no tax on the QCD and I may still take the standard deduction.

[Critter]

True on both counts.

[Hal_Al]

You must be over age 70.5 to make a Qualified Charitable Distribution (QCD).

The actual amount of the QCD will not show up anywhere on form 1040. Instead, TurboTax (TT) will put the notation "QCD" between lines 4a and 4b.  The QCD amount may not totally account for the difference between lines 4a and 4b, depending on how much of your IRA distribution was taxable and any other pension distributions you have.  The full details, including the QCD amount,  will be on the "1099-R Summary" Worksheet, which is not sent to the IRS.

[tspackman]

I am 71 and have updated to the most recent version of the software.  TurboTax does NOT give me the option to report my QCD after I have entered my 1099R information.  Now what?

[Hal_Al]

@tspackman The new rules make 72 the RMD (Required Minimum Distribution) age.  I wonder if that means you can not do a QCD until you're 72.

Let me see if I can get another opinion @dmertz 

[dmertz]

QCDs are permitted by IRA participants and beneficiaries once they have reached age 70½.  Nothing has changed in regard to that.  However, TurboTax developers introduced a bug when implementing the RMD age change (even though the RMD age has nothing to do with the QCD age requirement).

For those with a birthdate between July 1, 1949 and June 30, 1950, TurboTax presently (now version R15) has a bug the prevents it from asking the necessary question regard transfer of the distribution to charity. 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 back in TurboTax back to your actual birthdate.

[tspackman]

Thanks for the workaround!