Qualified Charitable Distributions and state income taxes
Will a Qualified Charitable Distribution excluded from federal AGI also be excluded from state income tax?
Is anyone aware of a state where this is not the case?
Will a Qualified Charitable Distribution excluded from federal AGI also be excluded from state income tax?
Is anyone aware of a state where this is not the case?
Permalink Submitted by Alan Spross on Tue, 2011-01-25 20:24
There may be a few such states, since some states must pass legislation conforming to federal law changes, and several do this after the fact leaving the taxpayer in limbo. If taxpayer guesses wrong, then they may have to amend their state return. This may be particularly true given the 31 day extension for 2010 QCDs.
The taxpayer should check with their state tax authority. Some state websites might have advice regarding conformity to the recent federal changes in 2010. If a state conformed to QCDs in prior years, they would likely conform to the recent changes, but no guarantee. Some states (eg CA) automatically comply with federal retirement tax provisions.