On the 1099-R there are these boxes. "Taxable amount not determined" checked; "Total distribution" not checked; "IRA/SEP/SIMPLE" checked

There was no code in Box 7? That was my specific question.

When Schwab was asked, they said they do not make tax decisions for clients or give tax advise.

From this I assume you didn't say to Schwab, "The 1099-R is miscoded. I need a new one."

Assuming that your friend did complete a Qualified Charitable Distribution either Schwab miscoded the 1099-R or the preparer misprocessed a correctly coded one.

I can't venture a guess as to why the error wasn't caught before the return was filed.

Phil
Rule Your Retirement Home Fool