Received 2 1099-Rs One code Y (QCD) one code 7 for the total RMD

[markhaefele]

When entering two separate 1099Rs (the second for the QCD) for one IRA account - when you enter the required RMD it concludes you have not taken the full amount - and does not then include the second code Y QCD 1099 for the same IRA account.  It then calculates a penalty tax on 5329.

The only way I found to make it work is to use code 7 on both 1099's and split the required RMD between them. Then there is no penalty calculation.  However, I don't like that as it's a Red Flag for IRS - since no number matches the total required RMD.

Any other solutions? or is this a program change required in TurboTax?

[MinhT1]

If you are sure that you have satisfied all RMD requirements, then in TurboTax, on each form 1099-R for RMD withdrawals, answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.

By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS. Your total RMD is not reported to the IRS either.

TurboTax will also reduce your taxable amount by the amount transferred to charity.