$600 cash charitable contributions (Tax Year 2021)

[dorrminator369]

I'm working on my 2021 income taxes (to be filed in 2022) and the software won't give credit for the $600 joint contributions.  Even if I change the numbers in the contributions deduction, the overall federal amount on the return remains static which tells me it isn't taking it into account.  In addition when the software reviews my deductions, it lists the standard deduction of $27,800 as the best option, lists the $600 below that, and then still gives me a total amount of $27,800 and doesn't add in the extra $600.  Somethings appears to be wrong with the software.  Is a fix in order?

[scottxray]

I also am having a problem with the charitable contributions in TTAX 2022 . 

I have TTAX deluxe CDrom, am filing joint with my wife, and have about $3,120 in charitable cash contributions.

The standard deduction for us is on line 12a is $27,800 (we are both >65).

The contributions are shown on my schedule A, and on the lines and box between 12a and 12b that states to enter 600 if filing joint and using the standard deduction.    If I enter the 600 it appears to take the entry and will complete  JUST the federal review, and say there are no errors.   When I then go through my state tax (which also passes when the state review is done) and then TTAX does a check of the complete return it changes  line 12b back to 300 and the review flags it as wrong.  

This is an apparent bug in the program and must be corrected to file.

[rjs]

@dorrminator369 

Look at the actual Form 1040, not the summary screens in the TurboTax interview. There is a bug in the summary display that, as you have observed, makes it look like it's not adding the $600 to your deductions. But the problem is only in the summary screen. The actual tax form is correct. If you have $600 on Form 1040 line 12b you are getting the deduction. The total on line 12c will include the $600.

The bug in the summary screen has been reported to TurboTax.

[Jdoucett]

I am in the final run through. It says that I have one item to correct. This is considering the items twelve a through c. I am to take the lower of. I am filling married. I put in 600 on 12:b ( not sure which line. The system accepts. Then I do a recheck and it comes back to the same. Regardless of what I do, it just sends me back to correct. I am at a loss here. I would appreciate some help. 

All of this is the charitable worksheet.

Jim 

[rjs]

@Jdoucett  Don't do the recheck. That seems to be what changes the amount. Enter the $600, then proceed. When you look at your actual tax return before you file it you should see $600 on Form 1040 line 12b.

[scottxray]

I agree that the check of the return resets line 12b to $300 if it was set to 600.  When it is flagged you can then correct it to 600, and then, as long as you don't do a recheck ( which the instructions on the page says you SHOULD do), the program will go ahead and allow you to finish the return, and file it.

However, the program is not just changing the summary screen.  It is also changing the 1040, since when the  the $600 figure is used ( before the check sets it to $300) the refund amount I receive  is $66 larger then when it is set to the $300 amount.   As soon as the final check occurs the extra $66 disappears.  Reentering the $600 returns the extra $66 refund.

As has been said by several others, the problem is in the coding of the program.  Last year ( 2020) the maximum allowed amount for the charitable deduction was $300, if married filing joint and using the standard deduction.   The problem is likely that the 2021 program has the same code in the check for this deduction, as last years program, and has not been updated to allow the $600 that is this years allowance. 

So, it IS a failure of the program and not an error by the user.   At the very least Intuit could give the users with this issue a firm statement to simply not repeat the check, if this is the single and only issue that the final check finds.    And then they could PATCH the program to work properly,  instead of just leaving the bug in place.           

CHAMP (rjs) is replying to this thread and saying don't do the Recheck.   However, I do not know who CHAMP (rjs)  is, and if they represent Intuit directly.   So Champ, are you replying as a rep of Intuit?   

[cautery]

Champ.... in spite of your "Level 15", you sir are wrong.  This is a TRUE bug; verified by HUNDREDS of people that I have found so far, and it is NOT just Standard Deduction either....  A similar but different result happens at the SAME place if you switch to itemized....

At best there is a non-sanctioned work-around or two.... NONE of which are acceptable to ME while preparing official documents for submission to a Fed agency that could frack my life up 7 ways to Sunday.

[TheRealTax2]

Add me to the list with the same issue. I will wait for the fix. Last year I made recommended workarounds from one of these discussions regarding a different issue and had to amend tax returns. The good news is that amended returns can now be efiled. 

[rjs]

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@scottxray wrote:

I do not know who CHAMP (rjs)  is, and if they represent Intuit directly.   So Champ, are you replying as a rep of Intuit?   

---

I am not a representative or employee of Intuit. I am a user who has been helping other users and answering questions in this community and its predecessors for over 17 years.

[jw9972]

Must be a software problem.  Any idea when it will be fixed?

[MichelleLO]

To correct this issue, please click here and follow the steps provided by @JotikaT2.

@jw9972

[cautery]

@MichelleLO 

Ma'am, with all due respect, you are WRONG.  STOP passing off that kludgy work-around to every swingin' Richard who comes along.  It is NOT a SOLUTION.  And is for danged sure NOT the SOLUTION for everyone.

JUST STOP! <shaking head in disgust>

[scottxray]

As previously mentioned by others, removing the Itemized deductions from the Federal return will also remove them from the AZ state tax return, resulting in a tax increase there.   AZ automatically uses itemized deductions if you have them, for most State returns, even if the federal return is using the standard  deduction.    This would then require a different fix for the state return as the state return lists the federal charitable deductions shown on schedule A .

I will try this later to see if the state form can accept and list separate charitable deductions than the Federal return.    But it is still a program bug that should be fixed by Intuit.

[scottxray]

After following the instructions to remove the charitable deductions from schedule A, and then proceeding, the program did list the $600 deduction I had and allowed it to pass all checks.  The AZ state form then has a area to claim the charitable contributions that you did not list on the Federal form, but you have to manually subtract which of those contributions you claim a state tax credit for from the total.    Note that The AZ form  asks the user to go back, and enter all charitable contributions on the federal schedule A ,  at the start of that process.  So, there is still a disconnect in either the federal or the state process, due to a bug in turbo tax itself.   

AZ allows a tax credit of up to $800 for approved charities in AZ, and you must list them in a later step.  Once you do that the Federal form will maintain the $600 entry,  and both it and the state form will pass the final checks and allow you to file with NO errors reported.     I did give Michelle a thumbs up for the information, but  there is still an issue that TTAX should correct to make the program work without a work around having to be done.    Once the standard deduction is selected after entering all the schedule A items TTAX should default to the $600 allowed, if it was less than the amount on Schedule A.     

 I think that it is actually more accurate to list all the charitable contributions made on schedule A ( which still keeps me below the Itemizing point on the federal and which TTAX asks you to enter when following it step by step))   and then after resetting the $600  that will  change to $300 when the state form is finished and the whole return is checked,  just not doing the second check , and filing. 

This is still a disappointment and lack of support by Intuit and TTAX.

[TheRealTax2]

I think I'll do the latter and just skip the second check. It takes me about an hour to enter all charitable contributions in schedule A. Thanks for testing the workaround.