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Charitable deduction not allowed in federal when claimed as state tax credit
When you claim a state tax credit (dollar for dollar), you cannot claim it as charitable deduction in the federal, according to the IRS. However, TT doesn't warn you about this in the federal or state form. You have to manually remove charitable donations that are also claimed as state tax credit from the federal form. If you leave it anyway it doesn't get caught in the federal and state accuracy check.
I would like to confirm that TT doesn't warn about this and that TT doesn't ask a question in the federal or state form such as: "Are you claiming the federal charitable donation as tax credit in the state form? if yes, then remove it from the federal form...".
March 28, 2020
5:29 PM