I turned 70 1/2 in 2020. I was not required to take an RMD because of age change requirement in law. I am able to take a Qualified Charitable Distribution because that age did not change even though I was not required to take RMD. After filling in 1099-R I was not asked if I transferred this to charity. How do I enter this in Turbo Tax 2020?
For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R15.1) 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.
For those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R15.1) 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.
I just discovered this as a problem, both Desktop and Online software, before I saw your post.
Do you know if anyone, CHAMPs or other, passed it up the line to Moderators for software folks to correct?
I believe that @macuser_22 passed it along, but I'm not sure. It seems that the developers are still swamped with updating 2020 TurboTax for tax code changes and have given essentially no attention to bug reports.
Yes it has been reported, but I am not holding my breath.
Since the 8915-E is going to require many new 1099-R interview questions, I would assume that they are already working on that using the draft forms. A update to the same code for another reason is the type of thing where one update can break another.
They might wait for that - just a guess on my part since there is a workaround..
I am having this same problem, but my birthdate is not in the range mentioned. I entered an amount from my 1099-R that represents a QCD but was not asked about its tax status, and TurboTax is treating it as a taxable distribution. Therefore the proposed "fix" to change my birthdate does not apply and does not correct the problem.
@Arizonie wrote:
I am having this same problem, but my birthdate is not in the range mentioned. I entered an amount from my 1099-R that represents a QCD but was not asked about its tax status, and TurboTax is treating it as a taxable distribution. Therefore the proposed "fix" to change my birthdate does not apply and does not correct the problem.
What code is in box 7 on your 1099-R?
Is the IRA/SEP/SIMPLE box checked?
Are you over age 70 1/2?
If your birthdate was after June 30, 1950, you were not eligible to make a QCD in 2020. QCDs are only permitted after you have actually reached age 70½.
QCDs are only permitted to be made from IRAs, not from other types of retirement accounts. Make sure that you've marked the IRA/SEP/SIMPLE box on TurboTax's 1099-R form correctly.
Here are the requested answers:
What code is in box 7 on your 1099-R? 7
Is the IRA/SEP/SIMPLE box checked? yes
Are you over age 70 1/2? yes
@Arizonie wrote:
Here are the requested answers:
What code is in box 7 on your 1099-R? 7
Is the IRA/SEP/SIMPLE box checked? yes
Are you over age 70 1/2? yes
Delete the 1099-R and check the personal information section to be sure that the date of birth is *before* 7/1/1949. If it is, change it to 1948 and then enter the 1099-R. Afterward change the DOB to the correct date.
I switched to form mode and entered the information in Qualified Charitable Distribution section of the form. It worked fine.
Thanks, I used the workaround of changing my wife's date of birth to a year earlier....it worked! (for now).
@questioningQCD wrote:
is there any ETA on a code fix?
No. Since there is a simple workaround and a fix will require extensive interview changes my guess it that it will be a very low propriety after more urgent problems are solved.
I was 70 1/2 in 2020 so I experienced this problem with Turbo Tax. I changed my birth date, entered the QCD, and went back and corrected my birth date. This worked until I got to Finish and File and it would not let me file electronically unless I fixed my file. I have talked to 3 different reps who said they were going to report the problem, but it is not fixed as of this past Thursday.
What is the form mode that you changed? I am not familiar with it. Thanks!
It worked for me a week ago. It took two tries because I first changed my spouses BD but accidentally listed the QCD as coming from me. Did you double check the questions where you are asked which IRA the contribution came from?
@dntaylor1950 wrote:
What is the form mode that you changed? I am not familiar with it. Thanks!
The forms mode is only in the CD/download desktop versions.
On my version there is a forms button clearly labeled on the upper right hand side. Click on this, then look for Form 1099-R for your appropriate Payer. Scroll down a quarter of the way and you'll see a place to enter your Qualified Charitable Distribution. Good luck!
I have a Inherited IRA, Distribution code 4, and made a Qualified Charitable Distribution. TurboTax will not recognize unless I change my age to something over 70 1/2 (as suggested in a earlier post). When I do, it recognizes the Taxable amount as a Qualified Charitable Distribution and corrects the taxable amount. I then change my age back and I get a error saying I have to be over 70 1/2. When I try to e-file, I get stopped. Is there a work around, is this going to be corrected ,or do I have to mail in my return??
There is a work around for this situation. The 2020 version of 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,
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.