Yes, there are limits, and I seem to be hitting them. But I still don't understand what is going on. Here is more detail.
I have high charitable deductions. My cash donations are almost 50% of my AGI, and my cash and capital gain (stock) deductions together are over the 50% limit. I also have carry-over deductions from previous years for both cash and stock.
When I enter my cash and stock charitable deductions (Premier 2024), Schedule A will show my cash contributions on line 11 and the eligible portion of my stock contributions on line 12. Line 12 is basically the amount of contributions I can add to my cash contributions to get to the 50% limit, so lines 11 and 12 together take me up to the 50% AGI limit. TurboTax also shows on line 13 a carryover contribution, which is identical to the eligible stock contribution on line 12. Then it adds all three of those to get line 14, my total charitable deduction.
But that is double counting. The stock deduction already took me to the 50% limit, and I don't think I can take the carryover deduction in addition, but that is what TurboTax is doing.
I played around with this and removed some of my cash deductions. That means line 12 and line 13 both increase, and the result is that I can get a result where TurboTax is computing my charitable deduction to be thousands of dollars over the 50% AGI limit. And that means that if I report lower contributions, because of the double counting, my allowable deduction increases, and my tax is lower.
Is there something else going on here that I don't understand?
