PA EITC

[clarkwenglejr]

I entered the info correctly from the K-1 statement I received from the LLC through which I contribute to the PA EITC. Turbo tax is not reflecting my tax credit in my state return nor is it applying the 10% of my donation (the portion of my donation which the state doesn't allow me to deduct) on my federal return. 

[AmyC]

Let's start with the state issue:

1. Go to the Pennsylvania State return section.
2. Navigate to the Credits and Taxes or Information for Credits section.
3. Look for Other Credits or Schedule OC.
4. You will need to manually enter the info from your PA RK-1 (not the federal K-1):
5. Credit Description Code: Use PT (for Pass-through).
6. Awardee Tax ID: This is the EIN found on your K-1.
7. Amount: Enter the 90% credit amount.
8. Verification: Once entered, look at your PA-40, Page 2, Line 23 ("Other Credits"). The credit should now appear there. If it’s blank, your tax isn't being offset.

The federal:

1. Go to Federal -> Deductions & Credits -> Charitable Donations.
2. Manually enter the 10% portion of your donation here as a "Cash Contribution" to the final recipient (the school or scholarship org).
3. Example: If you donated $10,000, you received a $9,000 PA credit. You should manually enter $1,000 as a federal charitable deduction.
4. This only helps if you itemize your deductions (Schedule A). If you are taking the Standard Deduction, this 10% won't change your federal refund.