1099R QCD

[cmk27]

OK, so it's entered in inc section, however , despite what I keep reading regarding TT program, it does not provide option to specify the funds as a QCD among the 15-20 choices. It does give the option to ID the funds as CRT, which is different. And there are 2 boxes to address in ID ing the nature of the funds distributed.

Please advise, in clear and specific language.

I am so weary of this program despite the money and TIME I've wasted I'm ready to trash it, despite having used it for several years, it's not improved.

Thank you

Carolyn

[MayaD]

When you enter 1099-R, you'll be asked in one of the follow-up questions if it was a Qualified Charitable Distribution.

TurboTax includes the full amount of the distribution reported on your Form 1099-R on line 4a (IRA Distributions) of your Form 1040 or 1040-SR. The taxable amount reported on Line 4b will be the total distribution less the QCD amount and will have "QCD" entered next to it.

QCDs are limited to the amount that would otherwise be taxed as ordinary income. 

A distribution made directly to the IRA owner, who then gives it to a charity, doesn't qualify as a QCD.

Where do I enter my 1099-R?

[cmk27]

MayaD, I appreciate your response, however it doesn't resolve my problem. I'll try to be more clear:

on the 1099R form there are selections, #1-9, then alphabetical selections A-W, F being listed as Charitable Gift Annuity. None of the selections specify a CRT. Since they are distinctly different and there is no option to select the correct identification , a CRT for the total amount of the RMA, what does one do?

Also line 2 a "taxable amount" and 2 b"taxable amount not determined"are "not checked" and I'm reminded of this as I proceed through the pages to complete the form.

Line 7 "IRA/SEP/Simple" is not selected on the 1099R I received from Fidelity.

Going through the pages following the 1099Form do not mention QCD anywhere.

Please clarify.

Thank you,

Carolyn

[VolvoGirl]

What is your 1099R from?  While entering your form 1099-R, if you have entered a birth date which makes you older than 70 1/2 in the tax year, TurboTax will ask you if any portion of your distribution was transferred to charity. You can then enter the amount transferred to charity.

The code in box 7 of form 1099-R must be 7 and the box IRA/SEP/SIMPLE must be checked.  You can’t do a QCD from a 401K.

[cmk27]

The funds are from an IRA rollover, an RMA, distributed by the holding company as required. There was no question about DOB, why should there be since I'm in the middle of completing the 1040 and all of my info has already been entered ?

Program is strange; a follow up page reminds me that if I'm over 70 1/2 I might consider a charitable gift. Duh..... why not give me that option on the page I can't find the correct option, QCD? There is no such option on the follow up pages either.

What does "7" in box 7 specify?

Thanks,

Carolyn

[VolvoGirl]

7 in box 7 is the most common code.  7 = Non disability and is the same as Normal distribution.    Did you say the IRA/SEP/SIMPLE box is blank?   It should have a X in it to be checked.  Ask the plan about that.   I’ll also ask @dmertz 

For your birthdate I mean go back to the very beginning  My Info and double check it.  I

[dmertz]

The Form 1099-R indicates that this is not a distribution from an IRA.  Because QCDs are only permitted to be made from an IRA, TurboTax correctly will not offer the option to report it as a QCD.  You must instead claim the charitable contribution on Schedule A.  The taxable amount is required to be included on Form 1040 line 5b as taxable income.