If your contribution of stock was to a qualified organization, you can get a deduction for the fair market value of the stock at the time of donation up to 30% of your gross income. If you have other charitable deductions of stock, cash, or non-cash items this can further cap your allowable deductions this year. In that case, the remainder is carried forward to future tax years.
TurboTax takes the larger deduction based on the fair market value or cost basis. If it appears that it is using the cost basis rather than the FMV as the deduction, I would delete your contributions and re-enter them:
- Go to Federal > Deductions & Credits > Charitable Donations > Donations to Charity in 2021
- Select your charity and Add stock.
- Make sure that you did not retain partial ownership or attach conditions on the donation. Usually the answer on We'd like to check some details about the stock is None of the above.
- Verify all the information is entered correctly on the next screen.
If your charitable deductions are being limited, that will be indicated on Schedule A.
