Following is my experience with 2020 Turbotax Premier on a Macbook:
Schedule A line 11 Dotted Line is suppose to have amount that is treated as
"Qualified Contributions" but Turbotax does not put any amount on dotted line
and thus does not flag what part of line 11 entry is to be processed as "limited to 100% AGI"
although in tax preparation the box to treat as limited to 100% was marked when entering
appropriate charitable distributions.
Received from IRS that there is error on my 2020 tax return and I owe thousands more.
Problem is that IRS processed my return as if I wanted by cash charitable contributions
which is shown correctly on line 11 was treated by IRS as limited to 60% of AGI although
in turbotax I indicated that it is to be treated as limited to 100% of AGI. The Turbotax
"charitable Contributions Summary" does properly list those I indicated 100% but that is a
work sheet and work sheet does not get efiled and thus IRS does not know I selected the 100%
and thus treat what on boxed line ll as limited to 60% of AGI.
Per IRS-2020-278 says "...individuals who would like to take advantage of the increased individual
limits must make their election with their form 1040 or Form 1040-SR"
In looking up how to make that election, on page A-12 "Qualified Contributions" the last paragraph
says "...Indicate the election by also entering the amount of your qualified contributions on the
DOTTTED (my emphasis) line next to the line 11 entry space.
Problem is that turbotax does not put on the dotted line of line 11 the amount that is to be treated
as the "Qualified Contribution" which is treated as limited to 100% of AGI. Thus, since nothing
indicated on dotted line of line 11, IRS processes line 11 entry space as limited to 60% although
intentions was to have all, in my case, processed as limited to 100%.
Note: Above is what I found when got IRS notice the past week and I investigated.
Seems crazy that IRS wanted the "Qualified Contribution" placed on a dotted line rather
than in its own box.
I expect others who efiled and chose the cash contribution to be limited to 100%
of AGI will hear from IRS assuming their Shedule A line 11 DOTTED line does not
have on it the portion of boxed 11 that is limited to 100% of AGI.
