Where do I enter the QCDs total I contributed to charities from my IRA as part of my Required Minimum Distribution?

[Anthony59]

I used part of my Required Minimum Distribution from my IRA to contribute to QCDs but I can't find where in Turbotax to enter the QCD amounts (to properly reduce the total amount of the RMD paid out (i.e., to the QCDs and the net amount to me). 

[macuser_22 · Accepted solution]

Qualified charitable distributions.

A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.

If you are 70 1/2 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.

The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[SweetieJean]

Just be aware that some states do not recognize QCD's, so you may still owe state taxes.

[kmilder]

   We are not given the opportunity to deduct the QCD amount when the 1099-R is imported.  After importing the 1099-R amount, you need to click on the "Wages & Income" sub-tab (upper left on the page) then click "Update" on the "!RA, 401K, Pension Plan Withdrawals (1099-R) line in the "Retirement Plans and Social Security" Section.

   Doing the update can be confusing but stick with it.  Replace the amount in box 2a with the taxable amount (Gross Distribution minus the total QCD).  No other changes on that page is typically needed to adjust for the QCD.  When you click "Continue," Turbo Tax will eventually ask if a charitable contribution was made.

    What's confusing is that, when you go back to the "Wages & Income" list, all distributions (QCDs, return of excess contribution, etc.) are shown even though a portion of that amount is not taxable. 

[macuser_22]

Int income summary only shows the gross amount, not the taxable amount.

[dmertz]

"Doing the update can be confusing but stick with it.  Replace the amount in box 2a with the taxable amount (Gross Distribution minus the total QCD)."

Do not modify the amount in box 2a; doing so serves no purpose and risks the IRS flagging a reporting discrepancy.  The amount in box 2a of a code 7 (or code 4) distribution this distribution from a traditional IRA (IRA/SEP/SIMPLE box marked) is required to be equal the amount in box 1, per the IRS instructions.  TurboTax properly uses the box 1 amount when determining that taxable amount of a traditional IRA distribution and, when the amount transferred to charity is entered, automatically excludes the QCD amount from taxable income.

[airedalejohn]

Have the same issue.,.. Part of my gross distribution last year on my 1099-R was a non-taxable qualified charitable distribution.

Although I meet the QCD criteria (age, #7 distribution code and IRA/SEP/SIMPLE box checked), I cannot get the program to ask me if I've made a QCD.  Frustrating.  Had a discussion with macuser_22 but problem not resolved. Is this an ongoing issue?

[kentwaynehoover]

Thanks. I get that the distribution boxes must be consistent. So, I use the download of my 1099s directly from my broker. Given previous responses and that the 2a. alteration is not correct, how do I enter the QCD within the guided completion of my return? (It seems to me that the question of QCD should be asked regardless of whether I download or hand-enter.)

Thank you again for the information.

[PattiF]

There is an issue with the new RMD age change for IRAs. If this applies to you, please see the following information:

As a workaround for this,

1. with the CD/download version you can provide the QCD-amount information on the 1099-R in forms mode
2. 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.

[dmertz]

The issue described in pattif12's reply was corrected with the March 10 release. [Edit:  Apparently in the CD/download version, but not yet in the online version.  See below.]

With any Form 1099 downloaded instead of being manually entered, you must still edit and proceed through that 1099 form in TurboTax.  With Forms 1099-R in particular, not all of the information needed to properly report the income is present on the form.

[macuser_22]

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@airedalejohn wrote:

Have the same issue.,.. Part of my gross distribution last year on my 1099-R was a non-taxable qualified charitable distribution.

Although I meet the QCD criteria (age, #7 distribution code and IRA/SEP/SIMPLE box checked), I cannot get the program to ask me if I've made a QCD.  Frustrating.  Had a discussion with macuser_22 but problem not resolved. Is this an ongoing issue?

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@airedalejohn See my last post in that thread.   The bug seems to be that TT is using age 71 1/2 and not 70 1/2.  Since your DOB is 11/1949 that is less the  71/1/2 so TT is not allowing it.  The workaround is to temporarily change your DOB to 1948,  delete the 1099-R and re-enter to get the question and finish the 1099-R, then change the DOB back to the correct year.      Nothing other than the QCD will go on the tax return.

[macuser_22]

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@dmertz wrote:

The issue described in pattif12's reply was corrected with the March 10 release.

With any Form 1099 downloaded instead of being manually entered, you must still edit and proceed through that 1099 form in TurboTax.  With Forms 1099-R in particular, not all of the information needed to properly report the income is present on the form.

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Seems not to be fixed in the online version (desktop seem to work fine) for someone with a DOB after 7/1/1949.

[airedalejohn]

Thank you........ the workaround works!  Was able to complete the QCD data.

[dmertz]

Thanks macuser_22.  I thought I had checked both the CD/download and the online versions, but I guess not.

[macuser_22]

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@dmertz wrote:

Thanks macuser_22.  I thought I had checked both the CD/download and the online versions, but I guess not.

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I thought I did too, but either we missed it or they stuck in another change that broke it again, but only online.