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June 7, 2019
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How do you enter a QCD from a RMD in Home and Business. All previous suggestions have not worked. I am over 70 1/2. and everything is entered directly.

  • June 7, 2019
  • 14 replies
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    Best answer by macuser_22

    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.]

    14 replies

    Employee
    June 7, 2019
    What is the code in box 7 of the Form 1099-R provided by the payer?
    Is the IRA/SEP/SIMPLE box marked?
    emilecoteAuthor
    June 7, 2019
    Yes.  Suspect now that TurboTax didn't ask about the qcd is because my wife is 3 months older and turned 70 1/2 before me yet my name and birthday is primarily used by TurboTax.  Thanks
    VolvoGirl
    Employee
    June 7, 2019
    The QCD question might come a lot later.  Like maybe after you go through the Deductions & Credits section.  So keep going.  When did you turn 70 1/2?  Your wife's age should have nothing to do with you entering a 1099R under your own name.  On a Joint return you need to enter each 1099 under the right spouse.  It uses both of your names and birthdates.
    emilecoteAuthor
    June 7, 2019
    The question never appeared.  All forms and birthday are entered correctly.
    Employee
    June 7, 2019
    A QCD can only be made from an IRA; not a pension, 401(k) or 403(b).
    Employee
    June 7, 2019
    Did you turn 70.5 in 2018? If so, did you make the contribution after reaching age 70.5?
    macuser_22
    Employee
    June 7, 2019
    As dmertz asked:   Is the box 7 code a "7" and is the IRA/SEP/SIMPLE box checked on your 1099-R?    You will not get the question if not checked.

    The RMD and QCD question is right after entering the 1099-R information - it is not later in the interview.   The first questing asked is "Did you inherited the IRA" and answering no, the next question  is the RMD question and then the "Transfer to Charity" (QCD) question.

    Be sure you checked which spouse the 1099-R is for.
    **Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
    emilecoteAuthor
    June 7, 2019
    Couldn't even get to the question.nor find out how to get there.  Suspect a program problem p
    macuser_22
    Employee
    June 7, 2019
    There is no problem with the program.

    I added screenshots of the entire sequence to the answer box below.   What are you doing that is different?
    Is the 1099-R coded exactally like the 2nd screenshot?

    First, verify your age -  first screenshot.  (Must be before July 1948 to be 70 1/2 in 2018.
    **Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**