I just noticed that the question about code Y for QCD was asked in December.  It's February and Lacerte still hasn't added that designation to the program.  I have a specific 1099 with Y on it.  When I do get it in--I get a critical diagnostic which says the return can't be efiled.

I wouldn't think that this would be hard to add to the program!!

@Caroleamst Thank you bringing this to our attention! I have passed this along and development is taking a look. Thanks!

Thank you, I have the same issue, cannot add code Y for charitable contribution from an IRA

Can't efile with a code Y.

I am just thinking out loud here, but I wonder if Phoebe's suggestion might actually help with the issue.  🤔

Hello @Caroleamst and @jfindley 
Can you confirm this has been addressed in the most recent update? Thanks!

I have just entered a 1099R with Code Y and 7 and I am receiving a diagnostic in Lacerte saying if the 1099R has both those codes then the issuing institution may need to be contacted.  From everything I've read, this diagnostic appears to be incorrect, but I can't get it to go away.

Enter it just as Code Y if you want to make the diagnostic go away.