I made a large charitable cache donation for tax year 2020. Turbotax allows up to my adjusted gross income to be deducted. As the result, my TT shows $0 for form 1040 line 15 (taxable income). But I got an IRS notice cp12. The conclusion is that line 15 shouldn't be zero because there's a limitation on how much I can deduct.
Is TT wrong? The amount of my donation is more than my earning; therefore, I was anticipating carry over deduction to next year. Now the IRS said I can't deduct as much as TT allows me to. Should I change my TT for year 2020 so next year's carry over will be correct?
Any help will be appreciated.
