North Carolina Charitable Contribution Carryover in Turbotax 2020 correct or an error needing a fix?

[DonaldCarver]

I called them again last night.  Supposedly "someone in IT closed my previous support case".  A bit more back-and-forth than I thought necessary, including at one point wanting to charge me to speak to a tax advisor to confirm it was indeed a technical issue vs a tax issue.  Also some more conversation about whether it was an Intuit error vs NC providing wrong links/rules for their forms.  Regardless, it'd be for Intuit to contact NC, not me!  Anyway, they did take all the info again, including the URL to this thread as evidence, and this time they also got screenshots of my forms via Glance.

So fingers crossed!

[SteamTrain]

@DonaldCarver   good to hear...

Yeah....I Checked after last weeks NC update and it wasn't fixed yet.

I've poked the TTX Moderators/Admins here, and thru a private access point a couple time with absolutely no response. They've really dropped the ball on this one.

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[RVG7]

Thank you DCarver, for your update and your work in trying to get this fixed, as the 3.10.21 NC update has not fixed this software error.  At this point and if it does not get fixed soon, I will most likely be filing an extension for my uncle's return for NC and perhaps Federal.  He passed on December 30 and there has been a lot on my plate with other issues involved with his estate.  I certainly can't file the NC return with this error, and may have to find a local CPA to prepare if it does not get fixed.   I appreciate your efforts in contacting TTX to get this corrected.  I was hoping my original post would get them to correct this.

[RVG7]

I took the time to review the NC Schedule S for deductions from income.   As we all know, Turbotax's software is so very wrong and not correct.  I'm wanting a refund, actually I would settle for a correct fix in the near future.

Turbotax's software allows for 100% charitable deduction (this CARES Act provision was not adopted by NC, and limited to 60%).  If you look at the NC Schedule S, line 16 "above the line Qualified Charitable Contribution Deduction", this adjustment to Federal deductions is not being made in their software calculation for NC.  For my uncle's return, it shows a "$0.00" deduction from his federal return, where it needs to show an adjustment  to lower his deduction against income because his charitable deductions are above 60% of his income. 

[DonaldCarver]

I think the problem is even bigger than just that...my Federal was already limited to 50% because I had a large amount of non-cash contribution and the CARES act only increased the limit for cash contributions.

So my Federal correctly limited mine to 50% and the NC limit was ignored, even though the Charity Limit 2 worksheet in the NC forms view calculated it correctly.

It's been 4 weeks, and I'm tired of waiting for my albeit now smaller refund, so I manually transferred everything over to the web-fillable NC forms, and did the remaining calculations myself.  Snail-mailed them this morning.  I would have preferred to file electronically, but didn't know how much longer I would have to wait.  I'm hoping this does eventually get fixed, because I want my carry-over to be correct for next year.  If not, after using TT for 16 years, it might be time to transition to Tax Cut. 🙂  I used it for 5 years before that, but I like the TT interface much better.  So I'm hoping this year is just a fluke.

[RVG7]

Thanks for the update.  I think I will be doing the same thing and make the adjustment on the web fill, Schedule S line 16 to get to the correct NC income.

[DonaldCarver]

Looks like the latest NC update has finally fixed it for me!  I've already mailed a paper return, and all the wait that NC has by going that route, but at least things should carry forward to next year's returns correctly.  Hope it's fixed for you, too.

[RVG7]

I followed your suit and sent it in by mail using web-fil last week.  I had given up hope that TTax was going to fix it.  Thanks for your suggestion to do this.

[billnorthraleigh]

There is a product update notice in TurboTax today, when I click the rejected NC return to fix the issue:

Description of error:
There is an issue in the North Carolina Charitable Contributions in the state tax return.

What needs to be done:
There is an issue with this topic in the product. This product update will be available on and after February 25, 2022. Please update your software on or after 02/25/2022 (for web products this will happen automatically) and follow the steps below before re-transmitting. 1. Go to your tax return and navigate to your state return. 2. Answer all questions as before until the screen "Charitable Contribution carryovers from prior Years" - If you don't see this screen and reach review, go to step 6. 3. On this screen "Charitable Contribution carryovers from prior years", review all the amounts. 4. Click the `Learn More' link under the `IMPORTANT' section to assist you in updating these amounts if necessary. 5. Check the box at the bottom of the screen to confirm the contribution amounts are correct. 6. Follow the screens and re-submit this return electronically. For ProSeries customers: On the North Carolina return please go to the `North Carolina Standard/Itemized Deduction worksheet', scroll down to the `Charitable Contributions Smart Worksheet' . Review all the amounts for accuracy and correctness. Check the box at the bottom of the smart worksheet to confirm the contribution amounts are correct. Re-submit this return electronically. You may also print it and mail it to the appropriate taxing authority via U.S. Mail. We apologize for any inconvenience this may have caused.

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[SteamTrain]

@billnorthraleigh 

This year's issue is different.

BUT

1) If you are using the "Online" software go way back to the actual NC tax return Q&A, and on the NC Income page, find the "Charitable Contribution Carryovers From Prior Years" section and enter into that section's Q&A.

Unless you KNOW you had a charitable carryover form 2020, all those values should be zero's, and the is a box you must check that you certify the values now displayed are correct.  zero's are always OK, but actual $$ amounts would be rare.

Then go thru the NC error checks and reviews, then re-E-file the NC tax forms.

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2)  If you are using the "Desktop" software...you must first run a software update (The NC update was implemented already on 24 Feb).   Then proceed as described in #1

[SteamTrain]

BUUUT...maybe they are going to issue another update tonight...so might be better to wait until tomorrow. (25th)

The notice description actually describes what to do fairly well.