Contributions from IRA/RMD

[mhbabcock66]

Made contributions to charities out of my RMD while monies still in IRA account.  No where while entering  a charity in Donations is there a place in  show this donations came out of RMD.  How do I show this?

[Hal_Al]

If you took money out of your IRA and then wrote a check to the charity, that does not count as a QCD (qualified charitable distribution). 

The money must go directly from the IRA to the charity. If that is the case, you do not enter it at Deductions> Charitable contributions.  You enter the 1099-R, for the IRA distribution at Retirement Income. After entering the 1099-R, in TurboTax (TT), the interview will ask you about the QCD.  Answer yes and follow the rest of the interview. TT will enter the notation QCD on the dotted line between lines 4a and 4b, on form 1040, to explain the difference in taxable amount and 1099_R amount. It will also prepare a worksheet for your records. 

[kjsayler1369]

Please explain to me how my contribution from my IRA directly to a qualified charity will be counted as my RMD and as far as my income is concerned.

[macuser_22]

Any distribution from your Traditional IRA in 2019 counts towards your 2019 RMD reguardless of what you did with the money.

Qualified charitable distributions.

A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.

If you are 70 1/2 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.

The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[dlynchio]

TT is not asking me for info on a QCD after entering the 1099R info.  I did turn 70 1/2 in 2020.

[macuser_22]

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@dlynchio wrote:

TT is not asking me for info on a QCD after entering the 1099R info.  I did turn 70 1/2 in 2020.

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2020 TurboTax presently has a bug the prevents it from asking the necessary question for those with birthdates between July 1, 1949 and June 30, 1950. 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 in TurboTax back to your actual birthdate.

This is due to TurboTax implementing the new IRA RMD age from 70 1/2 to 72, but overlooking that the 70 1/2 age for the QCD did not change. The TurboTax QCD question is tied to the RMD question so if you don't get the RMD question you will not get the QCD question either. This should be fixed in a future update - no telling when, but there is no downside to the workaround as long as the correct DOB is changed back after entering the QCD.

[dlynchio]

Thank you for the quick reply... I spent more time looking for the questions than it took you to reply!!  Really appreciate it.

[GabiU]

@dlynchio 

I'd like to thank you for reaching out at reporting this product issue you experienced. 

In order to help us further investigate...would you be willing to send us a is a copy of your tax return that has all of your personal information removed?  You can send one to us by following the directions below: 
In Online- 
1. Sign into your online account.​
2. Locate the Tax Tools on the left hand side of the screen. ​
3. A Drop down will appear. Click on Share my file with agent.​
5. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.​
6. Please provide the Token Number that was generated onto a response. ​

In Desktop- 
1. Click into your return. ​
2. Click Online and select "Send Tax File to Agent". ​
3. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.​
4. Please provide the Token Number that was generated onto a response. 

Thank you! I hope to hear from you soon. 

GabiU 

[ellend]

I gave a gift to a charity directly from Fidelity from my IRA and it was when I didn't know that I didn't have to take an RMD.  Now it keeps coming up as an income.  How do I stop it?

[Hal_Al]

@ellend 

After entering the 1099-R, you will be asked about RMD, answer yes (it actually doesn't matter how or if you answer).  The next screen will ask if any of it was given to charity.  Answer yes and follow the rest of the interview. TT will enter the notation QCD on the dotted line between lines 4a and 4b, on form 1040, to explain the difference in taxable amount and 1099-R amount. 

If your birthday  is between July 1, 1949 and June 30, 1950, see macuser22's reply above for a work around.