QCD that is not on 1099. How can this be entered ...
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salmonman
New Member

QCD that is not on 1099. How can this be entered so my AGI is correct6?

 
5 Replies
Cynthiad66
Employee Tax Expert

QCD that is not on 1099. How can this be entered so my AGI is correct6?

The QCD is excluded from your taxable income.

 

QCD is a direct transfer of funds from your IRA, payable directly to a qualified charity, as described in the QCD provision in the Internal Revenue Code. Amounts distributed as a QCD can be counted toward satisfying your RMD for the year, up to $100,000. The QCD is excluded from your taxable income.

 

This is not the case with a regular withdrawal from an IRA, even if you use the money to make a charitable contribution later on. If you take a withdrawal, the funds would be counted as taxable income even if you later offset that income with the charitable contribution deduction.

Why is this distinction important? If you take the RMD as income, instead of as a QCD, your RMD will count as taxable income.

dmertz
Level 15

QCD that is not on 1099. How can this be entered so my AGI is correct6?

I assume that you mean that the amount of the QCD is included in boxes 1 and 2a of the Form 1099-R but the Form 1099-R does not break out the amount that is QCD (which is proper reporting by the payer).

 

After you enter the code 7 Form 1099-R with the IRA/SEP/SIMPLE box marked, TurboTax asks how much was transferred to charity.  However, 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.

Carol40
Level 1

QCD that is not on 1099. How can this be entered so my AGI is correct6?

This workaround does not work. I changed my birthdate to before July 1, 1949 and am then asked the question, how much of the IRA distribution is an RMD. When I answer none, which is the correct answer, the question for QCD is not displayed. TurboTax needs to correct this program bug quickly.

Carol40
Level 1

QCD that is not on 1099. How can this be entered so my AGI is correct6?

If I purchase the CD or download version to provide the ability of entering the QCD amount directly on the 1099-R form, in which box would I enter the QCD amount? Secondly, the QCD amount needs to be identified as  a QCD on the 1040 form.  Will this workaround address that?

Cass0317
Intuit Alumni

QCD that is not on 1099. How can this be entered so my AGI is correct6?

Please see the following link for the work around on the 1099-R. Scroll down to Level 15 macuser_22's answer that also includes a screenshot.

 

Please also see the link below regarding QCD entry:

QCD Entry Information

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