Indiana tax on Qualified Charitable Deduction

[greatbear11]

If I take a QCD (Qualified Charitable Deduction) from my IRA Required Minimum Deduction (RMD), am I required to pay Indiana taxes on that amount?

[BillM223]

In general, Indiana starts with the federal adjusted gross income and does not appear to add QCDs back to state income. So, in the simple case, Indiana does not require that you pay state tax on the QCD.

I did see a note on a 2019 form that if any part of the QCD causes a state credit, then none of the QCD is deductible (i.e. 100% taxable).

I do not know on what occasions a charitable contribution would give rise to an Indiana credit, so this may be a moot point.

[Oakmore63]

I made a donation to a college in Indiana from my IRA.  No Federal tax on the donation.  Then on the State return I reported the donation on Form CC-40 like I have done for years.  This creates a credit that shows on Schedule 6 - Offset Credits.  The credit is $100.

Apparently, I cannot do this.  In a recent document from the college "A taxpayer should not use a Qualified Charitable Distribution to make contributions that result in state tax credits." 

Fortunately, I have delayed mailing my tax returns which were completed weeks ago.  I guess I will be redoing my State return.   In future years I will just pay cash which gets me the the college credit which is worth more than the Indiana tax on the income / donation. 

Maybe there needs to be a question on the source of funds for the donation in Turbo Tax.   With all the details of tax law it is hard to get it straight. 

Your thoughts?