Drake Tax - 1099-R: Qualified Charitable Distribution (QCD)
Article #: 11400
Last Updated: September 15, 2026
Important The new box 7 code Y is not available in Drake Tax 2025.
-
Go to the 1099 screen.
-
Select the Special Tax Treatments tab at the top of the screen.
-
Either check Box 2 100% QCD up to $108,000 or enter an amount in Box 2 partial QCD up to $108,000.
Note The limit per person varies depending on the tax year:
-
2026: $111,000
-
2025: $108,000
-
2024: $105,000
-
2023 and earlier: $100,000
If the 1099-R is entered as an IRA and Box 2 100% QCD up to [limit] is marked, only amounts in excess of that amount will flow to Form 1040
A Qualified Charitable Distribution (QCD) is generally a nontaxable distribution made directly from an IRA by the trustee.
Per Publication 590, you cannot claim a charitable contribution deduction for any QCD not included in your income.