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Level 1
January 30, 2021
Question

I need help figuring out what is supposed to be in line 10b on the 1040

  • January 30, 2021
  • 1 reply
  • 2 views
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1 reply

Level 15
January 30, 2021

This is a two-step process, so read carefully.

 

For 2020, Congress has changed tax law to permit the deduction of certain charitable contributions “above the line”, even if the taxpayer is taking the Standard Deduction otherwise. The new deduction will appear on line 10b on the 1040.

 

There are restrictions: the contribution must be in cash or cash-equivalent and it cannot exceed $300 for most filing statuses (exception: $150 for Married Filing Separate).

 

To enter this deduction, you must enter the charitable contributions as if you were going to itemize these contributions (do a Search (upper right) for charitable contributions and click on the jump-to result). Be sure to indicate that the contribution was “Money” or else TurboTax will not ask about it later.

 

Note that you do not need to enter any other charitable contributions if you are not planning to itemize.

 

Then, in the Federal Review at the end of your data entry, TurboTax will realize that you are taking the Standard Deduction and ask you to enter the amount of the charitable contribution that was in cash. Note the limits described above ($300 or $150); in the desktop product, at least, if you enter an amount larger than this, you will be asked to reduce it to the limit when you enter the amount.

 

When you enter the cash-based charitable contribution this way, the result will appear on line 10b on the 1040 as an above-the-line deduction.

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Level 2
January 30, 2021

I am itemizing and TT is recording $300 on line 10b plus my full charitable contribution of $900 on Schedule A. Double counting!

 

I assume line b is either: 

- only for those who are taking the standard deduction or

- my charitable donations on Schedule A should reduce for the $300 that is being attributed to line 10b. 

 

Any thoughts on how to correct this?

VolvoGirl
Level 15
January 30, 2021

10b is only if you take the Standard Deduction.  Are you sure you aren't getting the Standard Deduction on line 12?  How much is on 12?

 

For 2020 the standard deduction amounts are:

Single 12,400 + 1,650 for 65 and over or blind (14,050)

HOH 18,650 + 1,650 for 65 and over or blind

Joint 24,800 + 1,300 for each 65 and over or blind

Married filing Separate 12,400 + 1,300 for 65 and over or blind