Deductions & credits

Ok ... let's rethink this ... you are assigning the Sch A deduction against the one income item by itself.  A return is not completed in a vacuum ... it is one long math problem.   

 

All Income - adjustments = AGI   

AGI - (standard or itemized deductions) = taxable income.   

Taxable income x appropriate tax rate = fed taxes owed.  

 

An increase in AGI will allow more of the Charity contribution to be deductible automatically and the program will compute the amount for you ... what cannot be taken this year is carried forward to be used as allowed.