As you continue with the interview screens, you will be asked if you donated a portion or all of the distribution to charity. There are eligibility requirements. TurboTax will exclude this amount and will show the notation QCD.
See below for that list. Also see the screenshot at the bottom to see the correct screen.
A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your minimum required distributions (MRDs) for the year, as long as certain rules are met.
In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.
Can I make a QCD?
While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:
What is the code in box 7 of the Form 1099-R provided by the payer?
Is the IRA/SEP/SIMPLE box marked?
No Form 1099-R for a regular distribution from an IRA should have a zero in box 2a, so it seems likely that this account in not an IRA.
My first question was not the right one, and I didn't give you enough detail. I contributed 100% of my required IRA distribution ($8000) to charity. My 1099-R box 2 is $8000. My box 2a is also $8000. Box 2b has an "x" in the box, "taxable amount not determined." Box 7 has a code "7" and also an "x" in the box "IRA/SEP/SIMPLE" How do complete the Turbo Tax 1099-R screen to gain the tax benefit of the donation?
As you continue with the interview screens, you will be asked if you donated a portion or all of the distribution to charity. There are eligibility requirements. TurboTax will exclude this amount and will show the notation QCD.
See below for that list. Also see the screenshot at the bottom to see the correct screen.
A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your minimum required distributions (MRDs) for the year, as long as certain rules are met.
In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.
Can I make a QCD?
While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:
Just be aware that not all states recognize a QCD, so you may still owe state taxes.
I do not see any QCD question in the 2020 on line turbo tax product I am using. What's going on??
If you have 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.
Otherwise, if you are using the online version of TurboTax, make sure that on TurboTax's be sure to mark the IRA/SEP/SIMPL box to agree with the marking on the form provided by the payer and then on the Tell us if any of these uncommon situations apply page mark the box to indicate I transferred all or part of this money directly to charity.