Schwab says in 2025 IRA distribution 1099-R Box 7 code Y (QCD distribution) was optional so Boxes 1 and 2A are the same. Where do I tell TT to reduce taxable amount?

Forum|Forum|4 months ago
March 21, 2026
6 replies
145 views

Should I manually reduce 2A by my QCD amount and change 7 to code Y?

TurboTax Online

Best answer by VolvoGirl

Expert Reviewed

No do not change anything on the 1099R form. It is taxable until you enter the QCD amount. After you enter the 1099R the very next screen will ask - Do any of these situations apply to you? Check the 7th box for I Transferred all or part of this money directly to Charity. Then on a couple more screens you enter the amount after you go though the RMD questions if you are the age to take a RMD.

VolvoGirlAnswer

Level 15

Expert Reviewed

VolvoGirl

Level 15

Expert Reviewed

Here's a couple screen shots I just made

dyons

Level 4

Dear VolvoGirl

Unfortunately, my TurboTax 2025 Deluxe does not have this 7th line saying "I transferred all or part of this money directly to charity." All the other lines from your screenshot are these. (The software is up to date.) Any suggestions on how I can do this without changing the 1099-R entries which currently uses code 7?

Thanks for your help.

VolvoGirl

Level 15

What code is in box 7 on the 1099R? How old are you? When were you born? You have to be 70 1/2 or older on Dec 31, 2025 to take a QCD. Delete the 1099R and enter it again manually. That might clear it up.

dyons

Level 4

Thank you for your prompt response. I feel such a fool, as shortly after sending the message I realized that I was not 70 1/2 for that tax year. The prompt will appear when I reach the correct age! I apologize for wasting your time. I benefited greatly from your responses to others and the screen shots.

dmertz

Level 15

It's true that for TurboTax to present the question you must be at least age 70½ by the end of the year, but to qualify as a QCD you still are required to be age 70½ or over at the time of the distribution from the IRA. If the distribution paid to charity does not qualify as a QCD, you can instead claim it on Schedule A if you itemize deductions.