Question

How do I enter my QCD?

Forum|Forum|3 years ago
January 16, 2023
2 replies
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our QCD reduces taxes on our distributions, where does it go on the forms

TurboTax Deluxe Online

Enter your 1099-R in the Retirment section. Enter through the screens until you arrive at the question about transferring to charity.

Can I make a QCD?

While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)* —there are requirements:

You must be 70½ or older to be eligible to make a QCD.
QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.
The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)
For a QCD to count towards your current year’s MRD, the funds must come out of your IRA by your MRD deadline, generally December 31.

The Form 1099-R must have code 7, and the IRA/SEP/SIMPLE box must be marked.

S

ssJacorD73

I can't find QDC under my 1099 R when asked for reason for distribution. Where and How on TurboTax do I designate my contribution I had sent directly non-profit as QCD. It not when I enter the 1099-R information.

J

JohnW152

In TurboTax Deluxe Online,

Select the Federal dropdown in the left pane
Select Wages & Income
Select the Add my income button
Proceed through the interview until you arrive at the Your income page
Scroll down and select Start or Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
Select Add 1099-R

Once you enter the information from the relevant Form 1099-R, which reports the distribution, there'll be some follow-up questions. One of those questions relates to whether the distribution was transferred to a qualified charitable organization. You can indicate that all, part, or none of the distribution was transferred.

On your actual Form 1040, line 4a will include the amount of your distribution, and line 4b will show any taxable amount ($0 if the entire distribution was transferred to the charitable organization) and the designation QCD will be shown on that line as well.

Please be aware that you can't claim a charitable contribution deduction for a QCD that's not included in your income. Please see Qualified charitable distributions (QCDs) in IRS Publication 590-B for more details.

S

ssJacorD73

That is exactly the problem,there is NOT a question asking if it was a QDC .

B

BrittanyS

The questions for "I transferred all or part of this money directly to a charity" will only show up if your birthday reflects you are 70 1/2 for the tax year 1099 was received and the "IRS/SIMPLE/SEP" box is checked. To verify the box is checked, follow these steps:

Click Wage & Income
Click Edit beside IRA, 401(k), Pensions Plan Withdrawals (1099-R)
Click Review beside 1099-R
Verify who the 1099-R belongs to
Verify payer and address information
Under Enter your 1099-R details from the Payer screen, verify if a check mark is in box IRS/Simple/SEP box
You will receive a message, Do any of these situations apply to you? You will mark, I transferred all or part of this money to a charity

Here is a screenshot.