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

[hartingsbob]

My turbotax Deluxe 2025 does not prompt in the 1099R does not have any additional prompting for QCD. If I manually set the Gross Distribution to the accurate Taxable Amount, it does calculate the tax properly; however, if I do not do that, then the tax is overstated. 

[VolvoGirl]

Delete that 1099R and enter it again Manually.  Then keep going though all the follow up screens and questions.    Are you over 70 1/2?  Is the little IRA box (between boxes 7 & 8  checked?  I

[hartingsbob]

You are correct... but it is a pain if not answered properly the very first time. This is not user friendly.  I had to completely delete the 1099R and reestablish it and then and only then was I able to select out of a string of possibilities if part of the distribution was a charitable contribution. Once identified that there was a CQD, it then prompted for the other questions. But...if you do not answer correctly the first time, it is extremely difficult to revise!

[hartingsbob]

Thanks Dawn and Volvo Girl!

[user17711968589]

Supposedly:  After you enter the 1099R TurboTax will ask you if any portion of your distribution was transferred to charity. This does NOT appear.  What to do???

[user17711968589]

TT does NOT "ask you if any portion of your distribution was transferred to charity" 

What's wrong here???

[VolvoGirl]

Check your birthdate under My Info or Personal Info.  You have to be over 70 1/2.  What code is in box 7?   And is the little IRA box checked next to box 7?   

Other than that go over the posts above.   Delete the 1099R and enter it again Manually.  That usually fixes it.  

[hartingsbob]

The question about any portion of a 1099R being a charitable contribution is hidden in a string of questions that appear after the first time you enter all the pertinent info about that particular 1099R and enter all of the amounts associated with it.    A page comes up with a list of 10 questions all in a row and the 7th one is the following:

I transferred all or part of this entry direct to a charity.

You need to check that box and then a question will appear as to what portion of the 1099 amount went to charity.  At least that's how I finally got it in there.

If you don't check it on that initial entry, you need to delete the entire 1099R and reenter it to get that prompt to appear.