@colonel_biggs wrote:
I regret my delayed response, since I have been traveling. Your info has been particularly useful to me.
Yes, I thought that maybe I could split the contribution, since it won't be used right away. You obviously discourage such a move. I went back to my 2023 return and plugged in a $5,000 contribution ( I used the Easy Step method), and was surprised to learn that it did not reduce my taxes by one bit! My AGI and taxable income were over $200,000, so I wouldn't think th.at my donation was too large to be acceptable, or deferred to another year. I know that a donation can't be greater than 50% , or two-thirds, of one's AGI. If I remember correctly, the donation amount cannot be entered directly into a Form 8283. Very confusing.
I can't explain the results of your 2023 test without more information. You would have to actually look at or print a copy of the form 1040 and the schedule A before and after the adjustment. Look at the bottom line on schedule A and line 12 on form 1040.
Turbotax will use the standard deduction if your itemized deductions are less. For 2024, the standard deductions are $14,600 for single and married filing separately, $29,200 for married filing jointly, and $21,900 for head of household. Common itemized deductions are mortgage interest, state and local taxes (capped at $10,000), medical expenses (limited) and gifts to charity. If you rent, or own your home without a mortgage, and don't make gifts to charity, then your maximum itemized deduction would be $10,000, so Turbotax will use the standard deduction because no matter what your filing status is, all the standard deductions are higher than $10,000.
If you now add $5000 in a gift to charity, your itemized deduction would be $15,000, meaning you would get a very small tax deduction if you are single (because $15,000 is $400 more than the standard deduction) but if you are married, you will still use the standard deduction because it is much higher than your itemized deductions even with the donation.
I'm not aware off the top of my head of other limits on donations, other than the 60% limit you mentioned, but that would only apply if you had a significant donations. You might also not have generated all the right paperwork if you were just fiddling around with the program, but someone would have to look over your shoulder.
You have to look at your own facts and circumstances.
