Minnesota 2020 Charitable Contribution Limit

Forum|Forum|5 years ago
January 23, 2021
1 reply
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Minnesota conforms to the federal charitable contributions deduction when itemizing. The CARES Act increased the limit on cash contributions from 60% to 100% of AGI. For 2020 does Minnesota allow a deduction up to 100% of AGI for cash Charitable Contributions or is it limited to the 60% as in prior years? Turbotax is currently limiting it to 60%, but I am not sure that is correct.

MaryK4

Level 15

Yes, Minnesota follows the federal amounts for Itemized Deductions so the increased limit applies.

Subd. 4. Charitable contributions. (a) A taxpayer is allowed a deduction for charitable contributions. The deduction equals the amount of the charitable contribution deduction allowable to the taxpayer under section 170 of the Internal Revenue Code, including the denial of the deduction under section 408(d)(8), except that the provisions of section 170(b)(1)(G) apply regardless of the taxable year (Minn. Statutes 2020 Section 290.0122)

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ReebsAuthor

Level 4

Thank you! If you are correct then Turbotax Deluxe for Window Desktop is not handling it correctly and limits it to the 60% limit. How and When will that be corrected?

In further research if looks like Minnesota is a static conformity state. It conforms to the Federal as of a certain year. It was conforming to the 2018 tax year and I didn't see where the legislature updated this yet. However the Minnesota tax return instructions say to follow the limits as described in the IRS publication 526, but that has not been issued for 2020 yet. So it is hard to determine what is right.

ReebsAuthor

Level 4

You answer pertains to the Federal Return which I have already recorded correctly and have greater than 60% in deductible donations. My question was specifically for the Minnesota Return which is limiting the amount to 60% of Fed Adj Gross Income.

The Minnesota Return as of the update today March 26th still limits the contributions to 60% even though the Federal Return allows more. When will TurboTax get this corrected?