please clarify what happened in 2020?
A QCD must adhere to the following requirements:
You must be at least 70½ years old at the time you request a QCD. If you process a distribution prior to reaching age 70½, the distribution will be treated as taxable income.
For a QCD to count toward your current year's RMD, the funds must come out of your IRA by your RMD deadline, which is generally December 31 each year.
Funds must be transferred directly from your IRA custodian to the qualified charity. This is accomplished by requesting your IRA custodian issue a check from your IRA payable to the charity. You can then request that the check be mailed to the charity, or forward the check to the charity yourself.
Note: If a distribution check is made payable to you, the distribution would NOT qualify as a QCD and would be treated as taxable income.
The maximum annual distribution amount that can qualify for a QCD is $100,000. This limit would apply to the sum of QCDs made to one or more charities in a calendar year. If you’re a joint tax filer, both you and your spouse can make a $100,000 QCD from your own IRAs.
The account types that are eligible for QCDs include:
Traditional IRAs
Inherited IRAs
SEP IRA (inactive plans only*)
SIMPLE IRA (inactive plans only*)
I turned 70.5 in September of 2020. I made QCDs in November of 2020, but tax year 2020Turbotax did not allow me to claim any QCD. I had to file my taxes manually and subtract my QCDs from line 4a to yield the taxable amount on line 4b with the letters "QCD" preceding the value. Turbo Tax would not let me do that. The BIG question is: Did you fix that for tax year 2021?
We have! There is a new issue for folks turning 70.5 during 2021 but that shouldn't effect you at all. Just enter your 1099-R as usual and then follow the prompts when it asks if you donated all or part of your distribution to charity.