QCD

[rosekennethj]

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]

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.

[SteamTrain]

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-distribu...

[LRH2020]

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.

[mdolan8608]

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]

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@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.

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

[fishing4fun]

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.

[dmertz]

fishing4fun, something other than the workaround caused the result that you obtained.  The only thing that the workaround does is allow TurboTax to ask the necessary questions regarding the QCD instead of bypassing them.  It's how you answer TurboTax's questions that determines the result that you get on your tax return.

[SamS1]

I would recommend deleting the 1099Rs, changing the birthdate, then re-entering them.  This might work versus changing your birthday and then trying to make the previously entered 1099Rs work.

Form 8915-E is schedule to released b live in TurboTax  on 2/24.  This will help with the Cares Act relief for early retirement plan distributions.

[fishing4fun]

Thanks for the feedback.  I have tried all of your recommendations.  Nevertheless, the problem still persists.  Although I can trick TurboTax into accepting my QCD info with the birthdate change workaround, it still makes that QCD the taxable amount and ignores the other IRA withdrawals.  I have checked many times and the data for all three of my IRA withdrawals are entered accurately and as required with distribution type 7 and simple IRA checked.  

[SamS1]

Just to make sure, do you see the QCD question on the Uncommon Situations screen directly after you input the 1099R?  Secondly, are you using TurboTax Desktop?  If you are using Desktop, you would need to go into Forms mode then edit the 1099R by scrolling down the screen till you see the QCD questions.  How are you answering the questions on the RMD screens?  Are you indicating a portion of the withdrawal is RMD since you are taking the QCD?  

[dmertz]

fishing4fun, is it Form 1040 line 4b that you are looking at to determine the taxable amount that is being included in your AGI?

[macuser_22]

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@fishing4fun wrote:

Thanks for the feedback.  I have tried all of your recommendations.  Nevertheless, the problem still persists.  Although I can trick TurboTax into accepting my QCD info with the birthdate change workaround, it still makes that QCD the taxable amount and ignores the other IRA withdrawals.  I have checked many times and the data for all three of my IRA withdrawals are entered accurately and as required with distribution type 7 and simple IRA checked.  

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It is not "tricking" TurboTax., it is simply getting TurboTax to ask the question.  If you got the QCD question and entered an amount then that will not show as taxable income on the 1040 form line 4b - it will have "QCD" next to it.

[fishing4fun]

Thanks.  After trying everything recommended, I still get a strange result.  Background: I have wife's IRA RMD with a QCD and a beneficiary IRA RMD with no QCD.  When entering these amounts, Line 4b shows the total of the two IRA RMD's less the one QCD.  Which I believe is the correct taxable amount for these two IRA withdrawals.  "QCD" also appears on Line 4b.  The problem occurs with a third IRA withdrawal: I have changed my birthdate, and TurboTax asks about whether my IRA is a RMD and a QCD.  I enter the information.  Normal distribution "7" and Simple IRA "X".   Line 4a reflects the total withdrawals for the three IRA's.  Line 4b shows "QCD."  However, Line 4b shows the QCD for the third IRA withdrawal rather than Line 4a less the two QCD's.  I have examined all of the underlying worksheets and forms and all the data appears correct.  I cannot find a place to see where Line 4b calculation.   Is there a way to manually change Line 4b?  By the way, even though the third IRA withdrawal is not an RMD, I checked that box and it did not change the result.  

[fishing4fun]

One more piece of information.  As a test, I checked the box that my IRA distribution was for my spouse.  Line 4b is correct!