As you were born 07/02/1949, you reached 70 1/2 on 01/02/2020.
From tax year 2020, the age at which RMDs are required has been raised to 72 (instead of 70 1/2 previously).
Please read this IRS document for more information.
You can still claim a QCD from age 70 1/2. Please use the work-around detailed in this Community answer by Champ mcuser_22.
@jss11 Sorry for the confusion.
[Edited 02/25/2021 02:12 PM PST]
Sorry, @MihnT, your information cannot be correct.
It is true that RMD age is now 72, but a QCD is not an RMD.
The IRS is clear that you *can make QCD’s as of age 70-1/2.
For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R19) 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.
My birthdate is in 1954 and I have the same problem with no questions regarding QCD after I enter my 1099R data. The software glitch may go further than just 1949 to 1950 birthdates.
Delete the 1099-R and reenter. If you entered your birthdate of 7/2/49, after the 1099-R entry screen you should see the screen Do any of these situations apply to you? [See screenshot below, which was taken in the TurboTax Premier online version.]
If you were born in 1954, you have not yet reached the age of 70-1/2, the age where you can make a Qualified Charitable Contribution (QCD) from your IRA.
OK, that makes sense now. I received incorrect information from an advisor to make an IRA QCD at my current age. Too late to correct the donation done in 2020. Live and learn.
You can still treat it as an ordinary charitable contribution on Schedule A or (at least part of it) on Form 1040 line 10b.
This is ALSO a bug for people born in 1943.
Have IRA distribution, and sent off QCD to charities, but cannot use TurboTax to deduct the QCD.
This has been a bug for SEVERAL years ! Terrible service.
Now planning to submit returns by paper.
To be sure that you understand how a Qualified Charitable Distribution (QCD) is handled on your tax return, the distribution amount is not deducted on your Schedule A, Itemized Deductions. Instead, it is simply not included as part of your taxable income and it is not taxed. That is how you receive the tax benefit of the deduction, not by claiming a deduction on Schedule A.
To learn more, take a look at the following TurboTax help article:
What is a Qualified Charitable Distribution?
There is no QCD bug in TurboTax and there has not been any for quite a few years.
QCDs are only permitted to be made from IRAs by individuals who are over age 70½. For distributions that don't meet these requirements, TurboTax will properly not offer the option to report the distribution as a QCD.
(In case it's relevant: For distributions made from inherited IRAs, some people mistakenly believe that eligibility to make a QCD depends on the age of the decedent when, if fact, it depends on the age of the beneficiary.)
Regarding QCD bugs:
In Feb 2021 dmertz (you) said:
"
For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R19) 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." |
My birthdate is 1941.
Made a QCD from Fidelity of $12K. Then I get a 1099 R from Fidelity that the $12K is taxable & shows up as income. How do I nullify this income because of the QCD? (Fidelity will not re-issue a 1099R stating the $12K is not taxable.)
Turbo Tax has still NOT fixed this bug in their software, and I am not using it until they do. Line 4a should have your IRA distributions (from 1099-R), say $82000, and line 4b should have that amount minus your QCD, say $70000. And next to "4b" you should write (or TurboTax should enter) the notation "QCD". That is what I have done, and what I have seen in various instructions re QCD.
All versions of 2023 TurboTax handle QCDs correctly.
If the Form 1099-R has code 4 or 7 in box 7, has the IRA/SEP/SIMPLE box marked and the recipient of the Form 1099-R was born on or before July 1, 1953 as indicated in the Personal Info section, 2023 TurboTax will provide the opportunity to indicate how much of the distribution was QCD. In the online version of TurboTax on the Do any of these situations apply to you page, TurboTax will provide a checkbox to mark to indicate that the amount shown on the Form 1099-R includes a QCD. The CD/download version of TurboTax will explicitly ask if any amount was transferred to charity. TurboTax will exclude the QCD amount from the amount on Form 1040 line 4b with the "QCD" notation next to the line.
This is not completely fixed, at least in the desktop version of Turbo Tax 23. My husband turned 70-1/2 in early Dec. '23. He made a QCD from his Rollover IRA in late Dec. '23. According to IRS reg. it qualifies as a QCD since he was 70-1/2. I answered the questionnaire in TurboTax, correctly indicating this was a QCD. Nevertheless, the amount of the QCD does not appear as an offset to the IRA distribution, in determining Adjusted Gross Income. Neither does it appear as a charitable contribution.
Ignore my comment above. It DID correctly handle it, although it's somewhat hidden. It subtracts it from Line 4a to get to the amount on line 4b, only indicating QCD (but not the amount), off to the side.
If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. For a QCD, check 1040 line 4b. It should be 0 (unless you have other taxable 1099Rs) and QCD written by it.