So I'm still confused about how this works when there's also a QCD. Example: $39,500 contributed to IRA in MA (thus, basis). Year 1: Worksheet asks for total distribution -- account included both the original IRA contributions and rollover money from a workplace account, and the distribution was $25,000; additionally, had a QCD of 14000. On Schedule X worksheet, the 39500 wipes out the entire 25K, bringing line D down to 0. But then it asks for the QCD included in line 1 -- but Line 6 can't be reduced any further than 0. Now, Year 2: if I use the full $25 K for line3 -- "total contributions previously taxed," I will be deemed to have "used up" basis that included the amount of the QCD, which shouldn't;t have been taxed regardless. What am I missing here???
