What can I do if the software does not ask if a portion or entire distribution was a QCD., as indicated by a checked IRA box?

[confused-one1]

My IRA that was a QCD was listed as income. I was never asked on any screen if it was donated. I understand how this works but am frustrated with turbo tax for not dealing with it behind the scenes. Turbo keeps telling me my return is ready to file. I know it is not. Their behind the scens information was not added.

[DavidD66]

Your Form  1099-R must have code 7, and the IRA/Simple box must be checked.  In addition, you must be at least age 70 1/2 (according to the date of birth in TurboTax) at the end of the tax year.  As you enter your 1099-R, you will be asked any of your distribution was transferred to charity.  If you answer yes, the next screen will ask how much you transferred to charity. The next screen will let you know that the amount you transferred to charity is designated as a QCD (if you qualify for a QCD). This is the only place that you will actually see QCD mentioned.

[dmertz · Accepted solution]

For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R18) has a bug the prevents it from asking the necessary question regarding 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.

[Larry35]

I am 79 years old. I was not asked if any of the distribution was made to charity.

[dmertz]

Larry35, only distributions from IRAs are eligible to be treated as a QCD.  If the Form 1099-R provided by the payer does not have the IRA/SEP/SIMPLE box marked, the distribution must be included in income and the contribution to charity be treated as a charitable contribution either on Schedule A or on Form 1040 line 10b.

Presumably the Form 1099-R has code 7 in box 7.  If the Form 1099-R provided by the payer also has the IRA/SEP/SIMPLE box marked, try deleting and reentering the 1099-R.

[Shuterbug49]

My actual birthdate is June 24, 1949, yet the software is not giving me the option to enter an amount that was paid directly to a charity from the IRA.

How can I go about showing a smaller taxable amount than the full distribution amount.  The 1099-R show the same amount in box #1 and 2a.

[dmertz]

Shuterbug, if this distribution is from an IRA, the IRA/SEP/SIMPLE box will be marked on the Form 1099-R provided by the payer and the IRA/SEP/SIMPLE box on TurboTax's 1099-R form must be marked to match.

[Shuterbug49]

dmertz, thanks for the reply, however the ira/sep/simple box is checked on my 1099-R and on the TurboTax input.  Distribution code is 7 on both.

[dmertz]

The only other reasons that I can think of that TurboTax would not give you the opportunity to indicate that the distribution was transferred to charity is if you entered the Form 1099-R as belonging to you spouse, if younger, or if you have entered your birthdate incorrectly in the personal information.

If you are using the CD/download version, make sure that you have installed the latest update.

If you are using the online version, to indicate that you had some or all of the money transferred to charity you must mark the corresponding box on the Do any of these situations apply to you page.

[Shuterbug49]

I'm single and using the CD version; checking for updates every time I load.

Intuit has indicated they are aware of the issue, so I guess I just wait for them to figure it out.  This is actually the first time I have had a serious issue with TT since they removed some features from Deluxe and forced customers to upgrade to Premium.

[dmertz]

As far as know, all issues in 2020 TurboTax with regard to reporting a QCD have been corrected as of a few days ago.

Perhaps try deleting and reentering the Form 1099-R.