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tamwcm
New Member

There is a glitch in the Turbotax software that will not allow me to show QCD distributions greater than the aggregate distributions made into that specific IRA?

 
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6 Replies

There is a glitch in the Turbotax software that will not allow me to show QCD distributions greater than the aggregate distributions made into that specific IRA?

What do you mean? 

What does "aggregate distributions made into that IRA" mean?

 

After-tax basis cannot be part of a QCD only before tax money can so a QCD will not reduce the basis.

 

The QCD question is asked for each 1099-R entered.  All or part of that 1099-R can be a QCD up to the maximize yearly amount.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fishing4fun
Returning Member

There is a glitch in the Turbotax software that will not allow me to show QCD distributions greater than the aggregate distributions made into that specific IRA?

I am having same issue

There is a glitch in the Turbotax software that will not allow me to show QCD distributions greater than the aggregate distributions made into that specific IRA?


@fishing4fun wrote:

I am having same issue


Exactly  what is the issue?

 

What are you trying to enter?  Details please.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fishing4fun
Returning Member

There is a glitch in the Turbotax software that will not allow me to show QCD distributions greater than the aggregate distributions made into that specific IRA?

TurboTax is not allowing me to enter QCD for IRA distribution even though I turned 70.5 in 2020.

There is a glitch in the Turbotax software that will not allow me to show QCD distributions greater than the aggregate distributions made into that specific IRA?

Yes that is a bug but there is a workaround.

 

 

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.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fishing4fun
Returning Member

There is a glitch in the Turbotax software that will not allow me to show QCD distributions greater than the aggregate distributions made into that specific IRA?

Thanks for the workaround.  However, there may be another glitch associated with the QCD.  Form 1040, Line 4b the taxable amount of IRA Distributions equals the QCD.  This does not seem correct.

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