Here's a twist to the work around of changing your birthdate. I did that, and changed it to a date prior to my real birth date. Turbo Tax allowed me to enter the QCD info. I checked the propsed Turbo Tax return and it does show it as a QCD.
The 1040-SR shows the taxable amount of the QCD as 0. So it seems the software got that right.
HOWEVER, the amount of the QCD is still shown as part of the itemized deductions, which doesn't make sense. It might be a glitch in the work around of changing your birth date.
It matters because with the QCD included, my itemized deductions are greater than the standardized deduction by over $4,000. The QCD is not treated as taxable income, but the amount of the QCD is treated as an itemized deduction. Isn't that wrong? It seems like I should have to pay income tax on the $4,000.
Here's how it looks on the 1040:
Adjusted gross income (not including the amount of the QCD): $x
Itemized deductions (including the amount of the QCD): $32,000 (as an example)
Taxable income: $x-$32,000
If the QCD was $15,000, and the remaining deductions were $17,000 shouldn't my itemized deductions then be less than the standard deduction of $27,400 or whatever it is. I believe I should be taxed on the difference between $32,000 and $27,400. But Turbo Tax isn't doing it that way.
What am I missing?
