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RMDs sent to QCDs don't show up correctly on the 1040

I have Turbotax Deluxe 2023. We took our IRA RMD and sent it all to QCDs and took additional to convert to a Roth IRA. Turbotax asked all the pertinent questions and I have a screen that verifies the QCD amount is not included with the taxable income. However, nothing changed on the taxes owed when I entered the QCDs, and all the forms show the entire distribution as taxable. I have redone the work on this section several times with the same result. I consulted the TurboTax help and followed all the steps and again the result is the same.

 I am beyond frustrated and need some help, please! It seems that Turbotax has a glitch that does not accept the QCD information into the final forms. Please advise.

I don't see a way to attach screenshots of the relevant forms.

Thank you for your assistance.

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5 Replies
dmertz
Level 15

RMDs sent to QCDs don't show up correctly on the 1040

"However, nothing changed on the taxes owed when I entered the QCDs,"

 

Exactly what do you mean by that?  When you enter a From 1099-R that is all QCD, your tax liability shouldn't change because the QCD amount is not included in taxable income.  If the amount entered was not being treated as a QCD, your taxable income would increase and, generally, so would your tax liability.

 

As long as the QCD notation is present next to Form 1040 line 4b and line 4b excludes the amount of the QCD, everything is being handled correctly.  You do not also get to treat the QCD as a charitable contribution on Schedule A.

RMDs sent to QCDs don't show up correctly on the 1040

Hi, and thanks for the response.

When I entered the full amount as taxable, the tax owed showed up the same as after I corrected it to indicate the amount in the QCDs, instead of deducting the non-taxable portion.

None of the forms show that the QCD portion is separated, and everything is included in the total income. The 1040 does have the letters QCD on the side, but everything is in the taxable potion.

Any suggestions? I will try deleting the form and re-entering the information.

MarilynG1
Expert Alumni

RMDs sent to QCDs don't show up correctly on the 1040

Line 4a on Form 1040 should show the Total Distribution amount from your 1099-R.

 

Line 4b should show the balance (Total - QCD amount).

 

Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these distributions become tax-free as long as they're paid directly from the IRA to an eligible charitable organization. QCDs must be made directly by the trustee of the IRA to the charity.

 

Here's more details about Reporting QCD's.

 

@Holly Craw 

 

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RMDs sent to QCDs don't show up correctly on the 1040

Thanks for the response, Marilyn.

My issue is that the information entered into the TurboTax questions is not reflected in the actual forms, and the the gross income and the taxable amounts are higher than they should be.

 

I have contacted TurboTax support. It appears that there is a glitch in the software, and they are looking into the matter.

AmyC
Expert Alumni

RMDs sent to QCDs don't show up correctly on the 1040

Things are being worked on. You can sign up for updates here.

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