QCD Question

[Sparklecat2000]

Help - Line 4a shows the total of the RMDs my husband and I took. He is over 70 1/2 and part of his RMD was a QCD. I answered all the questions and entered in the proper amounts, but Line 4b for taxable amount shows only my RMD, and I know that the rest of his RMD is taxable. The QCD line is blank. I've checked my entries several times, and the QCD amount is there but TurboTax seems to be ignoring it or assuming that the whole RMD went to the QCD. How can I correct this?

[macuser_22]

I suggust that you delete his 1099-R and re-enter.   Be ure that you only answer the QCD question with the part of the RMD that was a QCD.

Qualified charitable distributions.

A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.

If you are 70 1/2 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.

The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[Anonymous]

was box 2a of the 1099-R with the QCD left blank?   

[Sparklecat2000]

Thank you, I realized my error - I hadn't input the value of the IRA as of 12/31/2019, so it didn't have any way of calculating the taxable amount. It is fixed now, and the tax due has risen accordingly (and unfortunately).