Can I enter a 1099R correction for a QCD coded in box 7 as T but should be Y?

[dhanowitz]

Can I correct a 1099R for a Qualified Charitable Distribution coded as taxable, T, but should be Y.

[ReneV4]

No. You should not try to correct your Form 1099-R. You must enter the information exactly as it appears. In the follow-up interview, TurboTax will ask if you "transferred the money to charity". Indicating that you did when asked, will trigger the tax-free QCD treatment on your tax return.

A quick note on the codes: Code T is correct for a Roth IRA distribution when the bank doesn't know if the account has been open for 5 years. While you can do a QCD from a Roth IRA, it is usually not the best tax move. Since Roth withdrawals are often already tax-free, using a Traditional IRA for your donations is usually better because it allows you to satisfy your Required Minimum Distribution (RMD) without adding to your taxable income. 

Click What do all the codes in Box 7 of the 1099-R mean? to learn more about the type of distribution you received.

[dmertz]

QCDs form a Roth IRA are very unusual and are not permitted at all if the distribution from the Roth IRA is a qualified distribution.  QCDs can only be made to the extent that distribution of all of the individual's Roth IRAs would result in taxable income.

If the distribution that you would like to be a QCD would be nontaxable if not treated as a QCD, you would be likely be far better off claiming it as a charitable deduction on Schedule A.  There is really no point in making a QCD from funds that in a few years would be a nontaxable qualified distribution if distributed then.  The only time making a QCD from a Roth IRA when you are over age 59½ but had not yet completed the Roth IRA 5-year qualification period would be if you needed to take more out of your Roth IRAs for other purposes that was more than your basis in Roth IRA contributions and conversions.