QCD Reporting Issue On Turbo Tax Question

[savory]

I am using TurboTax but have run into an issue that appears to be a glitch in their software.

On the federal taxes form 1099-R from Fidelity was imported with the distribution from my IRA. The entirety of this amount was donated using QCDs. All requirements are met and the 1099-R has the box on 2b checked which states that the taxable amount is not determined.

But TurboTax lists the amount as taxable even after I have made clear that it was donated as QCDs.

I have tried several times to edit to no avail. Apparently many others are having the same problem.

Is there a work around for this? I see only two options but don't like either: delete that 1099-R totally or pay the taxes on that amount and hope for a refund. Any advice/suggestions are appreciated.

 

[OldShooter]

FWIW the H&R Block program takes the full 1099 info but there is a separate page where it asks if any of each 1099 distribution was QCDs and then asks for the amount. Maybe there is something like that in your software.

IMO if the 1099R info is not included in your tax return the IRS will be unable to match with what it got from your custodian and will get a letter with a proposed interest amount and a penalty amount. Probably not a good tactic.

 

[braumeister]

I make QCDs and never had this problem (using TurboTax).

My 1040 Line 4a shows the total distribution and 4b shows the taxable amount (total minus the QCD) and "QCD" is typed in next to line 4b.

 

[harllee]

I used TT and reported a QCD and there was a place where TT asked if the amount was donated to charity. I answered yes and on the 1040 where the IRA distribution was reported TT typed "QCD" and the QCD amount was deducted. This was back in Feb so at that time TT was reported QCDs correctly. I typed in the IRA distribution manually and did not import it so you might try that.

 

[cathy63]

Edit the downloaded 1099-R and put the actual taxable amount in box 2a. E.g. if you took a $50K distribution and had $40K sent as a QCD, enter $10K in box 2a. You still need to answer the questions about how much was transferred to charity to make TTax print the QCD label on line 4b.

If TTax won't let you edit the 1099-R for some reason, you can delete the downloaded one and enter it manually, putting the correct taxable amount in box 2a. I just did this with a couple of manually entered 1099-Rs and it produced a correct 1040.

 

[donheff]

Never had a problem with QCDs on TT but I was going to suggest entering the amounts manually like cathy63 said.

 

[pops]

QCD Reporting Issue on Turbo Tax

I find that brokerage 1099R often just give the RMD without showing QCD.
That is why TT ask you about how much of the RMD was given to charity and fills out the 1041 correctly.

 

[savory]

Thanks all for your suggestions. It did get fixed but I am not sure exactly how. We kept pushing through. (It may never have been 'broken')

It is such a pleasure to belong to this group where people are so helpful. It's really appreciated.