How do I report qualified charitable donations paid from IRA

[Marsha5]

Thanks. Now I just have to get my IRA institution to send the $ directly to the charity.

[Chj1]

A year later bug forcing user to modify birth date to get prompted properly still has not been fixed.  Really?

[macuser_22]

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@Chj1 wrote:

A year later bug forcing user to modify birth date to get prompted properly still has not been fixed.  Really?

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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.

[Chj1]

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.

[CarissaM]

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. 

[macuser_22]

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@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.

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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.

[Chj1]

what form are you referring to?

[Chj1]

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.

[macuser_22]

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.

[arsack]

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).

[macuser_22]

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@arsack wrote:

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).

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Correct.  If you are between 70 1/2 and 72 there is a bug (that has been reported) that prevents the question.

[pinball]

I turned 70 in October 2020 and made a QCD in May of 2021 (I was 70 and 7 months old) from a decedents IRA with a RMD of $3,500 +/-.  I am not given the option to declare that the $ went to the charity.

My wife turned 70 in February 2020 and took her RMD from her decedents IRA also in May of 2021 and IS given the screen to declare whether part went to a charity.

Is there something I am missing, or does TT need to be tweaked?

Thanks!  Reed

[DawnC]

Yes, there is an issue for certain aged taxpayers.   Last year, there was an issue getting the Qualified Charitable Donation questions to appear for those with birthdates between July 1, 1949 and June 30, 1950.   In the 2021 TurboTax version, it has been partially corrected but not entirely.  

As a workaround for this, 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.    

@pinball

[pinball]

Thank you Dawn.  I am now one year older, but your suggestion worked and brought up the charitable donation option.

However, I withdrew and donated a whopping $3.15 more than my RMD to round out the donation and marked on TT that part of the withdrawal was for my RMD.  The program said that the full, rounded up amount was not counted as income and remind me not to deduct that as a charitable deduction elsewhere.

Wouldn't the excess over the RMD amount we ordinary income?

Thanks,  Reed

[MaryK4]

You must meet the age requirement t make a QCD and the maximum annual exclusion for QCDs is $100,000.  Regardless of your RMD, any amount up tp the $100,000 qualifies for the QCD.  

@pinball