Since the 1099-R section of 2025 TurboTax is not yet available, entering a QCD must be done in step-by-step mode. Entered properly on TurboTax's 1099-R form, TurboTax will allow a QCD entry.
2025 TurboTax imposes no requirement that a QCD be an RMD. If your wife's birthdate entered into TurboTax is a date before July 1955, TurboTax's 1099-R form is marked as a regular From 1099-R, is marked as belonging to your wife (when filing jointly), the code in box 7 is either 4, 7 or Y (and no other codes), the IRA SEP/SIMPLE box is marked and boxes 1 and 2a have the same value that is more than or equal to the QCD amount, TurboTax will treat the distribution as a QCD. Box 2b Taxable amount not determined should also be marked, but TurboTax does not require that for treatment as a QCD. If you enter a QCD amount more than the $108,000 limit for 2025, TurboTax will flag the entry as an error but will still treat the entire amount as a QCD when determining the amount that appears on Form 1040 line 4b.
TurboTax does not yet support code Y, so just enter the code 4 (distribution from an inherited IRA) or code 7 (distribution from an owned IRA) as appropriate. For 2025, the IRS does not require financial institutions to use code Y to report QCDs, instead making the use of code Y optional.
(Note that although it might be possible to do a QCD from a Roth IRA distribution reported with code T, the circumstances that would allow any of this distribution to be a QCD are so rare that TurboTax does not support reporting a QCD from a Roth IRA.)
