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Turbotax calculating tax penalty on IRA QCD amount

I made qualified charitable distributions from my IRA.  I received 2 1099Rs for the account, one with the QCD amount and the other with the funds I withdrew and received.  The 1099R with the QCD amount has a Y and a 7 code.  I checked the box on the TT questionnaire that I made a QCD and I entered the amount.  TT classified the QCD amount as undistributed funds as if I did not meet my RMD and calculated a penalty.  This is incorrect.  The QCD counts toward the RMD.  How do I correct this problem? 

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2 Replies
ratch
New Member

Turbotax calculating tax penalty on IRA QCD amount

I have the same issue, my 1099 shows only the taxable amount distributed to me ,and i entered the QCD into TT but it did not add the two together to accurately satisfy my RMD

AmyC
Expert Alumni

Turbotax calculating tax penalty on IRA QCD amount

Follow these steps to reset the logic:

  1. Revisit the 1099-R Entry: Go back to the Wages & Income section and edit the 1099-R that contains the QCD (the one with Code Y).
  2. The "Tell Us More" Screen: After entering the 1099-R details, you’ll reach a screen asking, "What did you do with the money from xx?" 
  3.  Say you took a withdrawal.
  4. The RMD Screen (Crucial): A screen will ask, "Was this withdrawal an RMD?"  
  5. Select "Yes, all of this money was an RMD" 
  6. The QCD Screen: Keep clicking "Continue" until you see: "Did you transfer any of this money directly to a charity?"
  7. Select Yes.
  8. Enter the exact amount of the QCD.

The program should be adding the 2 together when they are both marked as full RMD.

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