It's very hard to analyze a problem like this in TurboTax Online. That's why many of us prefer to use the CD/Download TurboTax software.
You have to look at Schedule A lines 11 through 14 to see what's going on with the charitable contributions. If line 11 is less than $8,725 you would probably have to go back to the individual Charitable Organization Worksheets or other worksheets to see what happened. When problems like this come up, you cannot rely on the summary screens in the TurboTax interview. You have to look at the actual forms.
You didn't say what your Adjusted Gross Income (AGI) is. "Entered income" is not AGI. Your AGI could be significantly less than the total income that you entered. AGI is on Form 1040 line 11, which you can see in TurboTax Online without paying the TurboTax fees. The limit on contributions is a percentage of AGI, not a percentage of "entered income." And certain types of contributions are subject to lower percentage limits.
You also didn't say what your other itemized deductions are. It's possible that some other deduction is being limited, so that the total is not as much as you think. Again, you have to look at Schedule A and not rely on the interview screens.
