Why won't Turbotax accept my donation of $80,000? It keeps saying amount donated can't exceed $100,000?

[7lchris]

This is for my 2022 tax return

[JohnB5677]

We'd love to help you complete your tax return but need more information. Can you please clarify your question?

• Is this a distribution from an IRA?
• Was the $80,000 combined with any other charitable donation?
• If this is an IRA distribution, are you older than 70 1/2?

[7lchris]

We are both over 73.  This is from an IRA distribution.  It was a donation from my distribution to University of Washington for $80,000.  Turbotax won't accept it.  We also converted $$105,000 from our IRA distribution to our Roth (Amerprise Financial handles both).  Turbotax won't accept that either.  We are standard deduction, and are expecting a refund of around  $7,000 so this is frustrating.  My husband's name is [PII removed].  My name (as the principle filer) is [PII removed].

[AbrahamT]

Only certain charities have the tax free benefit of rolling over rmd from an IRA. Other charities are not eligible to receive QCDs, including donor-advised funds, private foundations, and supporting organizations. You are not allowed to receive any benefit in return for your charitable donation. For example, if your donation covers your cost of playing in a charitable golf tournament, your gift would not qualify as a QCD. University of Washington may be considered one of these charities making you ineligible to qualify for this rollover.

You generally cannot make more than one rollover from the same IRA within a 1-year period

Also, 60-day rollover – If a distribution from an IRA or a retirement plan is paid directly to you, you can deposit all or a portion of it in an IRA or a retirement plan within 60 days

See HERE

[7lchris]

This $80,000 was a QCD paid directly from my financial institution to University of Washington.  We have been making these donations yearly, via a direct transfer from Amerprise Financial to the UW for many years.  We have no control over how the University of Washington uses these funds, not do we direct the funds use.  Help  

[DaveF1006]

To clarify, how did you report the QCD? Did you report it directly from the 1099R and did the program ask if you donated any of this to charity?  This is how you would report this as a QCD to declare this income as non-taxable. Also check to see if you marked the box  in the 1099R indicating this is a IRA/SEP/SIMPLE. Just an FYI, you would not enter this as a donation in Charitable Deductions in the deductions and credits section in your return if you tried to enter it here.

If you were expecting an additional tax benefit from this QCD, there is none.  Please read this IRS link for further clarification. It states that Transferred amounts are not taxable, but no deduction is available for the transfer.

Also, your IRA conversion to a Roth is a taxable event.  On the conversion, you are converting a traditional IRA that was pre-taxed and converting it to a tax-free account. i don't know if this principle is related to this issue but if you found that you either owe taxes or receive a smaller refund, this is the reason why.  Otherwise, i can't think of any reason why Turbo Tax couldn't handled this transaction.

Please don't hesitate to write back if you need to. 

@7lchris