The only circumstances where TurboTax will treat a code Q Form 1099-R as taxable is if you select code Q in both of TurboTax's box 7 drop-down boxes. Make sure that you have selected code Q in only one of the box 7 drop-down boxes and that you have left the other one set to (No entry). The TurboTax product-quality folks have deemed that TurboTax treating the entering code Q in both boxes as taxable to be a user entry error, not a program flaw or not something that warrants checking in Smart Check or final review.
(Of course you should be entering code Q only if the code on the Form 1099-R provided by the payer is Q.)
