Individual makes QCD from his IRA. State allows the taxpayer a tax credit because the contribution went to a charitable organization that qualified for the state tax credit. So taxpayer receives a state tax credit for 50% of the amount of the QCD. Assume taxpayer does not itemize his deductions.
Does the receipt of the state tax credit cause the taxpayer to lose the tax free treatment of the QCD or worse yet, does the receipt of the state tax credit cause the IRA to lose its tax deferred status? I thought I remember a speaker state that the IRA owner cannot receive ANY benefit, however minimal, without risking the loss of the tax deferred status of the IRA.