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fernpete

AmyC,

Thank you for taking time to review my TurboTax issue.

I’m providing here additional details that should clarify what I see as a code bug in TurboTax 2024 Home and Business edition.

I submit my 2024 tax return in February 2025, Turbo Tax calculated my refund to be $8013. I receive a letter from the IRS stating that “We have found an error on your 2024 Form 1040-SR, which affects the following area of your return”

Itemized Deductions

Further, IRS stated that:

“We changed the amount claimed as total gifts to charity on your Schedule A, Itemized Deductions, because it was figured incorrectly or the amount was not limited based on your adjusted gross income.”

Upon further review I found on TurboTax the following example: If your adjusted gross income is $50,000, and you donated $20,000 in cash, and $15,000 worth of goods. You can deduct only $5,000 of the goods this year ($25,000 limit - $20,000 cash donation = $5,000). Next year, you can deduct the remaining $10,000 (depending, of course, on your AGI). See charitable contribution carryover deduction for more information about charitable carryovers.

I determined that using this example and applying it to my return TurboTax did not limit my deduction correctly, TurboTax applied all of my 2024 cash donations, 2024 non-cash donation and my 2023 carryover deduction with applying the limit to the results on line 14 on Schedule A See calculation:

I am also including the Charitable Contributions from the Tax Return Transcript - Schedule A

I believe that TurboTax has a programing/calculation error that must be acknowledged and fixed.