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Returning Member
posted Jan 22, 2022 11:10:29 AM

Qualified Charitable Distribution and 1099-R reporting in Boxes 1, 2a and 2b

I turned 70 1/2 in mid November 2021 so am eligible to make a QCD from my Fidelity non-inherited managed IRA - and did so after that in 2021. My 1099-R came yesterday and the amount of the distribution was the same in Box 1 (gross distribution) and Box 2a (taxable distribution). (Fidelity told me - in two different calls - that that is the way their agent, National Financial Services, does it and it is up to me to determine/report the actual taxable distribution amount since a QCD is not taxable if the rules are followed, which I did.) So I have enter the same amount in the corresponding boxes (1 and 2a) in Turbo Tax for that IRA. Box 2b (taxable amount not determined) was also checked on the 1099-R so I checked that box in Turbo Tax for that IRA. But that meant I would be taxed on part of a distribution which was a QCD. How do I offset that? Fidelity said to simply indicate the recipient organization and amount of the charitable distribution in the charitable section of Schedule A in Turbo Tax. Did that. 

 

Here's the issue (problem?): we file "married jointly" and routinely qualify for the Standard Deduction anyway this the so called charitable gift entered into Turbo Tax's Schedule A has no impact on reducing our tax liability. The result: we are being taxed on a QCD for which we did not withhold any amount for federal tax purposes nor can I find any effective way in Turbo Tax to offset that distribution and thus effect our tax liability. What am I missing?? Help!  From a longtime satisfied Turbo Tax user

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5 Replies
Returning Member
Jan 23, 2022 4:31:42 PM

I'm replying to my own post because I talked at length with TurboxTax expert, Alicia. After a very long and thoughtful conversation we discovered this: while there is no prompt to do so on the page where I input 1099-R data for a particular IRA from which came a QCD, I needed to go to that IRA's worksheet and there is a line entitled Qualified Charitable Distribution and that is where I input the amount of the QCD. That solved it. Thanks, Alicia!!

Level 15
Jan 23, 2022 4:43:31 PM

You should have come to a question for that after entering the 1099R.   Maybe you answered a question wrong or it was something about your birthdate.  I know you have to fudge your birthdate to enter something for a 1099R.  Then change it back.   If you enter directly on the form or worksheets it may not let you efile.

Level 15
Jan 23, 2022 4:46:20 PM
Returning Member
Jan 24, 2022 3:20:51 AM

Thank you, VolvoGirl. My problem as been resolved as you might see from my post yesterday (after your helpful reply to my original post.) There still is no prompt (on the 1099-R entry page) to go to the worksheet for that 1099-R where the QCD is entered, but when entered it solved my issue. Thank you for your information.

Level 15
Jan 24, 2022 5:03:52 AM

This was a glitch on the 2020 software. Apparently it's still there for 2021.  Use the work around, rather than trying to make the corrections  in the forms/worksheet mode.  Forms mode is not available in the online versions. 

 

See the 2020 workaround at: https://ttlc.intuit.com/community/retirement/discussion/re-if-you-are-referring-to-making-a-qualifie...