Qualified Charitable Distribution

[conradl711]

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?

[dmertz · Accepted solution]

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.

[SteamTrain]

@dmertz 

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?

[dmertz]

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.

[macuser_22]

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..

[WearyTaxee]

Perfect solution.  Thank you!

[Arizonie]

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.

[macuser_22]

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@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.

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What code is in box 7 on your 1099-R?

Is the IRA/SEP/SIMPLE box checked?

Are you over age 70 1/2?

[dmertz]

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.

[Arizonie]

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

[macuser_22]

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@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

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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.

[RobNJ]

I switched to form mode and entered the information in Qualified Charitable Distribution section of the form.    It worked fine.

[Arizonie]

Thanks for that info, @macuser_22 . All is good now!

[dreinhard47]

Thanks, I used the workaround of changing my wife's date of birth to a year earlier....it worked! (for now).

[dkaegi]

I did exactly the same thing and it worked, too.