The NCDOR.gov website (https://www.ncdor.gov/taxes-forms/individual-income-tax/north-carolina-standard-deduction-or-north-c...), states that Charitable contributions are allowed as an itemized deduction, however, for 2020, NC decoupled from the temporary increase allowed under the CARES Act that allows and individual to increase charitable deductions from 60% to 100% of AGI. NC adopted the Code as of Jan 1, 2020, which excludes the CARES Act, and NC individuals may only deduct qualified contributions up to 60% of AGI.
In preparing my uncle's tax return, for 2020 there is a new section on the NC Standard/Itemized Deduction Worksheet, "Gifts to Charity", (this section was not in 2019 Turbotax worksheet). This section allows him to list a "Carryover from prior year" of 144,877 (which is the correct figure from his 2019 federal return). This results in him having a deduction greater than both 60% of his AGI and even 100% of his AGI, and results in a negative 91,149 of NC taxable income on line 14 of D-400.
If itemized charitable deductions for NC residents are limited to 60% of AGI, for 2020, my uncle's AGI is 111,546, which would result in his total charitable contributions for 2020, to be limited to 66,928. For 2020, his charitable giving amounted to $26,743, so his charitable contribution carryover would then be limited to $40,184. If this is a correct understanding, is Turbotax going to correct this in the 2020 NC state return?
