QCD Entry

[hartingsbob]

I have received a 1099R that contains a portion of which is a QCD.  The sender has indicated that the taxable amount is not determined. Regardless of my entry to to boxes 1 and 2a, it does not change the taxes that are being calculated in Turbo Tax; I have even dropped it down to 25%. The sender has indicated that the use of the code "Y" was optional for 2025. The sender also sent the form with a 7 in the Box 7.

If I change box 7 to a "Y" or add a second code and put a "Y" in that 2nd box, Turbotax calculates an extremely large amount that I am sure is incorrect. Is the programming working correctly?

[VolvoGirl]

After you entered the 1099R  TurboTax will ask you if any portion of your distribution was transferred to charity  (if you are over 70 1/2).   You can then enter the amount transferred to charity. 

For a QCD, check 1040 line 4b. It should be 0 (unless you have other taxable 1099Rs) and the QCD box checked. 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.

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. Check lines 4b & 5b for any taxable amounts. 

[DawnC]

Yes, it is.   Make sure you are entering your 1099-R as it appears.   You will be asked follow up questions about your QCD after you have entered the form as is.    

To report a qualified charitable distribution on your Form 1040 tax return, you'll use the 1099-R (even though there's no indication that it was a QCD).  Enter the info as a 1099-R and 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.     Rules and Qualifications for QCD - Qualified Charitable Donations