topic Re: QCD in Get your taxes done using TurboTax

QCD

dndonar — Sun, 09 Feb 2020 21:57:50 GMT

When I enter my wife's 1099-R IRA distribution I do not get a question as to whether all or part of the distribution went to a QCD; it all did. Consequently it is showing up as taxable. How do I show that the QCD was made and income is not taxable?

Re: QCD

DanaB27 — Sun, 09 Feb 2020 22:21:34 GMT

For TurboTax to ask if any portion of your distribution was transferred to charity, your wife's birthdate entered into TurboTax must indicate that she was at least age 70½ by the end of the tax year, the Form 1099-R must have code 7, and the IRA/SEP/SIMPLE box must be marked.

Re: QCD

dndonar — Mon, 10 Feb 2020 16:41:06 GMT

My wife's birthday is correct and she is past 70.5. The distribution code is 7. The current 1099-R does not have either Taxable Amount not Determined nor IRA/SEP/SIMPLE checked. However, these were not checked last year and the question as to some or all of the distribution went to a QCD was asked.

Re: QCD

AnnetteB6 — Mon, 10 Feb 2020 20:09:13 GMT

As stated by expert DanaB27, the distribution must be from an IRA, the distribution code on Form 1099-R must be '7', and the IRA/SEP/Simple box must be checked in order for TurboTax to recognize that the distribution may qualify as a QCD.

Otherwise, without that box being checked, the distribution is treated as a retirement plan distribution, not an IRA. Retirement plans other than IRAs are not eligible for the QCD tax treatment.

If the box is not checked, you need to request a corrected Form 1099-R from your IRA custodian in order to receive the correct tax computation on your return.

Re: QCD

dndonar — Mon, 10 Feb 2020 21:40:10 GMT

I thought as much re: requesting a corrected 1099-R. Thanks for your responses to my issue.

Re: QCD

fishing4fun — Thu, 11 Feb 2021 20:40:36 GMT

My 1099 is correct, but TurboTax is still not asking for QCD

Re: QCD

Irene2805 — Thu, 11 Feb 2021 21:34:20 GMT

Some users, with birthdates between July 1, 1949 and June 30, 1950, have reported difficulty entering the QCD. As a workaround for this:

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.
Change your birthdate in TurboTax back to your actual birthdate.

@fishing4fun