First, be sure that the distribution is from and IRA and that the IRA box is checked in the program. As you continue in the interview section, you will encounter the screen.
As you continue with the interview screens, you will be asked if you donated a portion or all of the distribution to charity. There are eligibility requirements. TurboTax will exclude this amount and will show the notation QCD.
You have to continue through the interview screen by screen. The screen that asks whether you transferred any of the distribution to charity doesn't say "QCD," but that's what it's about. If you answer that you transferred part of the distribution to charity, the next screen will ask you how much was transferred to charity. The next screen after that will tell you that the amount you specified is designated as a QCD. That last confirmation screen is the only place that you will actually see the term QCD.
A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your minimum required distributions (MRDs) for the year, as long as certain rules are met.
In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.
Can I make a QCD?
While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:
Where on Turbotax do I report charitable donations paid from IRA proceeds shown on 1099-4, box 4?
You saw the instructions above your post so I know that isn't the problem. Sorry, what form? The 1099R box 4 is federal tax withheld so I know that is not your question. More information please!
We are H & W filing jointly. I can't find a form to report W's RMD and she has a charitable contribution from the IRA. When I select the box on H's IRA Turbotax page for an additional IRA, the questions are asked of H, not W
How does W fill in her information?
How do I report qualified charitable donations paid from IRA for wife after husband's has been filled in? When I select "continue" it does not get me to a screen for wife.
How do I report info about Wife's IRA MRD which includes a charitable contribution (qualified) of part of the distribution?
@Kubert wrote:
How do I report info about Wife's IRA MRD which includes a charitable contribution (qualified) of part of the distribution?
Be sure to choose that the 1099-R is for your spouse.
@DonBirnie wrote:
Turbo Tax never asked if I donated any amount to charity.
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.
NOTE: 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.
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.]
The answers below about additional questions being asked in TurboTax related to Form 1099-R and QCD's are great but apply to the 2019 TurboTax.
I am now working on my 2020 tax return and haven't found the additional questions in the 2020 TurboTax for Form 1099-R referred to in the answers below that address a qualified charitable distribution (QCD) from an IRA. Are they there and I'm missing them? If yes, please help direct me to them. If they're not there, how do we claim the QCD deduction and add the required "QCD" to print on page 1 of Form 1040?
Thank You
Did you read my post that is directly above your question about the bug (note in bold) in the 2020 version?
There is no message when I enter a 1099-r that talks about a charitable distribution
After entering the 1099 information, there is no screen that comes up asking about a QCD.
If you make sure that the IRA box is checked and that you change your age as instructed, you will get this screen. @tapadebt
Thanks. Now I just have to get my IRA institution to send the $ directly to the charity.
A year later bug forcing user to modify birth date to get prompted properly still has not been fixed. Really?
@Chj1 wrote:
A year later bug forcing user to modify birth date to get prompted properly still has not been fixed. Really?
It has been fixes partly. It now works for age 72 but they seem to have overlooked the half year form 70 1/2 to 72. That has been reported as a bug.
I was able to enter my QCD by temporarily changing my birth date and now TT will let me file although I'm not ready to file yet.
What's puzzling is that according to TT support person I talked to yesterday "form 8606 is a required form needed for the complete reporting of your Qualified Charitable Distribution. To date, that particular form is being updated by the IRS and will not be available until February 10, 2022. "
So TT is going to let me file before the necessary form is ready? That doesn't sound right to me.
What does the form show when viewing it?
If the form is needed, Turbo Tax will not allow you to file until it is ready, which you are correct it will not be ready until 2/10/2022.
If you still need assistance you can contact customer support by following the instructions here.
@Chj1 wrote:
I was able to enter my QCD by temporarily changing my birth date and now TT will let me file although I'm not ready to file yet.
What's puzzling is that according to TT support person I talked to yesterday "form 8606 is a required form needed for the complete reporting of your Qualified Charitable Distribution. To date, that particular form is being updated by the IRS and will not be available until February 10, 2022. "
So TT is going to let me file before the necessary form is ready? That doesn't sound right to me.
A QCD is NOT reported on a 8606. Since the QCD is not taxable any existing non-deductible basis in an IRA can never to applied to a QCD.
You don't normally enter a 8606 itself. It is automatically created when:
1) You make a new non-deductible Traditional IRA contribution.
2) You take a distribution from a IRA that has a after-tax "basis" - except for a QCD which is already not taxable.
3) You make a conversion of a retirement account to a Roth IRA
4) You have distribution from Roth IRA.
[For more information:
See IRS 8606 instructions
https://www.irs.gov/pub/irs-pdf/i8606.pdf
"Who must file" page 1.]
If none of those occurred, then the last filed 8606 remains in effect
There are some circumstances when a 8606 must be files for other reasons and might require filing a stand-alone 8606.
https://ttlc.intuit.com/questions/1899503-what-is-form-8606-nondeductible-iras-used-for06.
I took a QCD and a taxable distribution from the same traditional IRA and both are reported on the same 1099-R.
Regardless of whether a form 8606 is required by IRS, TT support is telling me that it is but TT app is telling me I can file without.
Support gave you incorrect information. The 8606 is only required if the IRA contained a "basis" (non deductible contributions ) and QCD exceeded the amount of deducible contributions and earnings. Only if some of the non-deductible basis was removed would an 8606 be required that would be required if there was no QCD.
For my 2021 return, although I am 70 1/2 years old, when I was entering my 1099-R info, nowhere was I asked if any of the distribution went to a charity and was a QCD. There was no way to enter a QCD UNTIL I changed my birthdate to make me appear to be 72, then the screens came up that asked about QCD. After I entered the information, I changed my birthdate back to make it correct, and fortunately, none of the numbers changed. Apparently this was a bug in the 2020 TT version and apparently it's still there. And yes, even though one is 70 1/2 and does not need to take an RMD since that age was changed to 72, one still can take advantage of the QCD at age 70 1/2 (ie, the age to start QCD was not changed).