topic Qualified Charitable Distribution in Deductions & credits

Qualified Charitable Distribution

conradl711 — Sat, 30 Jan 2021 02:16:17 GMT

I turned 70 1/2 in 2020. I was not required to take an RMD because of age change requirement in law. I am able to take a Qualified Charitable Distribution because that age did not change even though I was not required to take RMD. After filling in 1099-R I was not asked if I transferred this to charity. How do I enter this in Turbo Tax 2020?

Re: Qualified Charitable Distribution

dmertz — Sat, 30 Jan 2021 14:20:32 GMT

For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R15.1) has a bug the prevents it from asking the necessary question regard 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.

Re: Qualified Charitable Distribution

SteamTrain — Sat, 30 Jan 2021 14:59:31 GMT

@dmertz

I just discovered this as a problem, both Desktop and Online software, before I saw your post.

Do you know if anyone, CHAMPs or other, passed it up the line to Moderators for software folks to correct?

Re: Qualified Charitable Distribution

dmertz — Sat, 30 Jan 2021 15:12:48 GMT

I believe that @macuser_22 passed it along, but I'm not sure. It seems that the developers are still swamped with updating 2020 TurboTax for tax code changes and have given essentially no attention to bug reports.

Re: Qualified Charitable Distribution

macuser_22 — Sat, 30 Jan 2021 16:04:41 GMT

Yes it has been reported, but I am not holding my breath.

Since the 8915-E is going to require many new 1099-R interview questions, I would assume that they are already working on that using the draft forms. A update to the same code for another reason is the type of thing where one update can break another.

They might wait for that - just a guess on my part since there is a workaround..

Re: Qualified Charitable Distribution

WearyTaxee — Wed, 03 Feb 2021 16:08:43 GMT

Perfect solution. Thank you!

Re: Qualified Charitable Distribution

Arizonie — Sun, 07 Feb 2021 21:09:41 GMT

I am having this same problem, but my birthdate is not in the range mentioned. I entered an amount from my 1099-R that represents a QCD but was not asked about its tax status, and TurboTax is treating it as a taxable distribution. Therefore the proposed "fix" to change my birthdate does not apply and does not correct the problem.

Re: Qualified Charitable Distribution

macuser_22 — Sun, 07 Feb 2021 21:14:25 GMT

@Arizonie wrote:

I am having this same problem, but my birthdate is not in the range mentioned. I entered an amount from my 1099-R that represents a QCD but was not asked about its tax status, and TurboTax is treating it as a taxable distribution. Therefore the proposed "fix" to change my birthdate does not apply and does not correct the problem.

What code is in box 7 on your 1099-R?

Is the IRA/SEP/SIMPLE box checked?

Are you over age 70 1/2?

Re: Qualified Charitable Distribution

dmertz — Sun, 07 Feb 2021 21:16:26 GMT

If your birthdate was after June 30, 1950, you were not eligible to make a QCD in 2020. QCDs are only permitted after you have actually reached age 70½.

QCDs are only permitted to be made from IRAs, not from other types of retirement accounts. Make sure that you've marked the IRA/SEP/SIMPLE box on TurboTax's 1099-R form correctly.

Re: Qualified Charitable Distribution

Arizonie — Sun, 07 Feb 2021 21:20:27 GMT

Here are the requested answers:

What code is in box 7 on your 1099-R? 7

Is the IRA/SEP/SIMPLE box checked? yes

Are you over age 70 1/2? yes

Re: Qualified Charitable Distribution

macuser_22 — Sun, 07 Feb 2021 21:31:57 GMT

@Arizonie wrote:

Here are the requested answers:

What code is in box 7 on your 1099-R? 7

Is the IRA/SEP/SIMPLE box checked? yes

Are you over age 70 1/2? yes

Delete the 1099-R and check the personal information section to be sure that the date of birth is *before* 7/1/1949. If it is, change it to 1948 and then enter the 1099-R. Afterward change the DOB to the correct date.

Re: Qualified Charitable Distribution

RobNJ — Mon, 08 Feb 2021 03:05:08 GMT

I switched to form mode and entered the information in Qualified Charitable Distribution section of the form. It worked fine.

Re: Qualified Charitable Distribution

Arizonie — Mon, 08 Feb 2021 03:36:42 GMT

Thanks for that info, @macuser_22 . All is good now!

Re: Qualified Charitable Distribution

dreinhard47 — Fri, 12 Feb 2021 17:52:55 GMT

Thanks, I used the workaround of changing my wife's date of birth to a year earlier....it worked! (for now).

Re: Qualified Charitable Distribution

dkaegi — Sat, 13 Feb 2021 19:36:05 GMT

I did exactly the same thing and it worked, too.

Re: Qualified Charitable Distribution

questioningQCD — Sat, 20 Feb 2021 03:55:49 GMT

is there any ETA on a code fix?

Re: Qualified Charitable Distribution

macuser_22 — Sat, 20 Feb 2021 04:09:18 GMT

@questioningQCD wrote:

is there any ETA on a code fix?

No. Since there is a simple workaround and a fix will require extensive interview changes my guess it that it will be a very low propriety after more urgent problems are solved.

Re: Qualified Charitable Distribution

dntaylor1950 — Sat, 20 Feb 2021 15:39:11 GMT

I was 70 1/2 in 2020 so I experienced this problem with Turbo Tax. I changed my birth date, entered the QCD, and went back and corrected my birth date. This worked until I got to Finish and File and it would not let me file electronically unless I fixed my file. I have talked to 3 different reps who said they were going to report the problem, but it is not fixed as of this past Thursday.

Re: Qualified Charitable Distribution

dntaylor1950 — Sat, 20 Feb 2021 15:41:20 GMT

What is the form mode that you changed? I am not familiar with it. Thanks!

Re: Qualified Charitable Distribution

Donkaegi — Sat, 20 Feb 2021 21:09:03 GMT

It worked for me a week ago. It took two tries because I first changed my spouses BD but accidentally listed the QCD as coming from me. Did you double check the questions where you are asked which IRA the contribution came from?