@mike s2
No, this response is not regarding IRS materials not being finalized. The instructions to enter information in a specific way in order to get the correct credits according to the CARES Act. Some users were experiencing an "unacceptable value" problem where there were zeros, and some had the $300 limit, which needs to be worked around.
How the CARES act changes deducting charitable contributions made in 2020
Previously, charitable contributions could only be deducted if taxpayers itemized their deductions.
However, taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act.
Here are the instructions:
If you are in TurboTax Online, the screen Charitable Cash Contributions under CARES Act appears as the end of Deductions & Credits. First you have to pass the screen Based on what you told us, the standard deduction is best for you at the end of Deductions & Credits.
But you have to qualify for the standard deduction before the screen appears. So you may want to change the value of one or more itemized deductions to $1 so that you qualify for the standard deduction.
Follow these steps:
- At the top of the screen, click on Deductions & Credits.
- Scroll to the bottom of the page and click on Wrap up tax breaks.
- Continue through several screens.
- At the screen Based on what you told us, the standard deduction is best for you, click Continue.
- At the screen Any Charitable Cash Contributions? remove the dollar amount.
- Continue through Federal Review to make sure that things look correct.
Then restore your itemized deductions dollar amounts.
See also this TurboTax Help article.
@mike s2
