topic I received a 1099-R from IRA distribution I had Some funds held for QCD where do I place those on my 1040 ? in Retirement tax questions

I received a 1099-R from IRA distribution I had Some funds held for QCD where do I place those on my 1040 ?

aklefsta — Mon, 03 Jun 2019 17:18:35 GMT

An IRA 1099-R has gross distribution in box 1 of $1,650, I did a QCD of $900 last year on the IRA, My question is Where do I deduct the QCD on my 1040?

If you are referring to making a Qualified Charitable Dis...

KarenJ — Mon, 03 Jun 2019 17:18:37 GMT

If you are referring to making a Qualified Charitable Distribution (QCD) from your IRA, there is a provision within TurboTax to take care of this.

The QCD question comes up after it asks about your RMD. Be sure that the IRA/SEP.SIMPLE box was checked on your Traditional IRA 1099-R.

If you are over 70 1/2 that should be asked. If not check your DOB in the personal information section.

While entering your information for the 1099-R you will come to a screen that says: Is this withdrawal an RMD? You answer yes. THE NEXT SCREEN should say: Transfer to Charity? This is where you check that all or part went to a charity and on the NEXT screen enter the amount.

I have an inherited IRA for a decedent who was over 70 1/...

ral0 — Mon, 03 Jun 2019 17:18:38 GMT

I have an inherited IRA for a decedent who was over 70 1/2 thus I am required to take an RMD. The RMD's went direct to charity so I should have the ability to say it is a QCD. I think that Turbo Tax does not prompt me with a "Transfer to Charity?" is because I am under 70 1/2. Turbo Tax needs to fix this immediately.

The workaround is to indicate that the deceased was born...

KarenJ — Mon, 03 Jun 2019 17:18:39 GMT

The workaround is to indicate that the deceased was born before July 1, 1944 even though the deceased born after that date. This will not have any other effects on your tax return.

I already indicated that the deceased was born before 194...

ral0 — Mon, 03 Jun 2019 17:18:41 GMT

I already indicated that the deceased was born before 1944, which is true. This did not result in a charity prompt. The problem is that the beneficiary was born after 1944, which I can not change.

Re: I already indicated that the deceased was born before 194...

Retired_CPA — Sun, 07 Feb 2021 13:56:34 GMT

I had the same problem using the 2020 Home and Business. I went to the forms view for the one that I entered and found the Qualified Charitable Distributions line (just a couple of page downs) and entered my QCD amount. Not great for Turbo Tax, but it worked 2/7/2021. Maybe they will fix it.

Re: I already indicated that the deceased was born before 194...

dmertz — Sun, 07 Feb 2021 18:14:28 GMT

Retired_CPA, this thread describes an entirely different problem. In past years TurboTax mistakenly treated the decedent's age as a factor in qualifying to make a QCD from an inherited IRA. However, the decedent's age is irrelevant to qualifying to make a QCD, only the beneficiary's age matters. The bug described above was corrected several years ago.

If you had not reached age 70½ by the date of the distribution that was transferred to charity, the distribution does not qualify to be a QCD and instead must be included in taxable income and reported as an ordinary charitable deduction.

The bug in 2020 TurboTax has to do with the beneficiary's (your) age. For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R16.1) 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.