Qualified Charitable Distributions

[Chenoweth]

I am replying to myself since I didn't have an opportunity to actually post anything. 

Here's the problem.  I have several accounts from which I receive RMDs.  In some, the RMD and the QCD are the same, so the taxable amount is 0.  TurboTax gets balled up when I enter zero in the taxable - gives an error re needing prior excess traditional IRA contributions when I run the final error check.  It also seems to double the amount of the QCD though I'm not sure about that.  A different account in which the RMD and the QCD are not the same has no problem when I enter the RMD minus the QCD amount in the Taxable box - no error and it gets the QCD amount correctly.    

[jforhann]

my return rejected because of QCD calculated error.  TT said no errors on return and return due March1 but error won't be corrected till after march10.

[MarilynG1]

RMD and QCD are not related.  When you enter your 1099-R, (as issued),  indicate that 'all of the distribution is RMD'.  On the next screen, choose 'part of this distribution was transferred to charity' and on the following screen, enter the amount that was transferred as QCD. 

The QCD amount is not taxable.  RMD is taxable as regular income.  The only problem arises is if you didn't take your RMD properly.

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

Here's more info on Qualified Charitable Distributions.

@Chenoweth

Edited 3/2/2023 | 6:13 pm

[Mike9241]

yes. many institutions report zero as taxable when it is not. then the taxable amount not determined box should be checked.. what you do is change that box to the taxable amount. the problem is not Turbotax's. you can make a QCD only from the taxable portion of the distribution and Turbotax has no way of knowing what amount if any is taxable so you must help it out.