1099-R Code Y

Forum|Forum|4 months ago
February 23, 2026
1 reply
6 views

TT seems not to understand the new Code Y for a QCD. I should be able to list the distribution on the 1099 with a Y code as 0 taxable, but it thinks there is an error if the code is not J or T. This new code is not being accounted for properly.

Please let me know when this has been corrected. I have plenty of time before April.

DoninGA

Level 15

Code Y is not used on a 2025 Form 1099-R. It will be used on the 2026 Form 1099-R.

rhmaynardAuthor

Level 2

Page 20 of the 2025 Instructions for Forms 1099-R and 5498 would disagree with you on this subject .

The last listed code is Y for Qualified charitable Distributions.

Page 1 notes this as "What's new". No publication effective date listed on the form, so, I can't tell how new this is, but the financial institution used it on two of my 1099s which should be correct.

Sorry I can't attach the directions here.

Thanks!

Bob Maynard

DoninGA

Level 15

@rhmaynard You are correct. It is in the instructions for the 2025 Form 1099-R. And it is shown on the 2025 IRS Form 1099-R.

My mistake, was looking at a 2024 Form 1099-R.

There is a code Y for box 7 of the 1099-R when using the TurboTax online editions and the TurboTax desktop editions.

Created a Form 1099-R with $5,000 in box 1 and box 2a empty. Box 7 used a code of Y. Continued through the various screen and landed on the screen How much did Payer transfer directly to charity? Enter $5,000 and on the following screen $5,000.00 of your retirement distribution is now designated as a nontaxable Qualified Charitable Distribution (QCD).