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Level 2

CARES Act $600 Charitable Deduction

  How do I enter the $600 charitable deduction allowed by the CARES Act even if you do not itemize?

 

Thanks!

3 Best answer

Accepted Solutions
Level 11

CARES Act $600 Charitable Deduction


@hanknjoyce wrote:

This is the deduction I was asking about. I copied this from the Make-a-Wish web site but it is mentioned a lot of places. It is an actual credit against AGI but my turbotax online does not indicate how/where to enter it (that I can find). Thanks.

 

 


We were typing at the same time.  That is for 2020, not for your 2019 tax return.

 

The CARES Act says $300, with no indicate that it would be $600 for a married couple.  However, I have not looked if there is any IRS guidance to clarify that.

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Employee Tax Expert

CARES Act $600 Charitable Deduction

The maximum above-the-line deduction for cash donations is $300 for married filing jointly, not individuls. See the screen shot below from IRS 2020 Instructions to Form 1040, page 29. In the news, when they refer to $300 for individuals, it means as compared to business, two major tax categories. It does not mean one person. 

 

 

For more information about other changes expanding allowable amounts when itemizing, see IRS Charitable Contributions Deductions

 

@rwwarren 

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Level 15

CARES Act $600 Charitable Deduction

By finish the deduction section just means to continue on to the end of it.  You don't have to enter other deductions.  Just keep skipping past the questions to get to the end where it says we have chosen the Standard Deduction for you.  

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23 Replies
Level 15

CARES Act $600 Charitable Deduction

The CARES act did not change the tax code to remove a charitable contribution from being an itemized deduction on Schedule A for tax year 2019.

 

[Edited]

 

 

Level 2

CARES Act $600 Charitable Deduction

This is the deduction I was asking about. I copied this from the Make-a-Wish web site but it is mentioned a lot of places. It is an actual credit against AGI but my turbotax online does not indicate how/where to enter it (that I can find). Thanks.

 

New Deduction Available: Up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income. A donation to a donor advised fund (DAF) does not qualify for this new deduction. 

Level 11

CARES Act $600 Charitable Deduction


@DoninGA wrote:

The CARES act did not change the tax code to remove a charitable contribution from being an itemized deduction on Schedule A.

 

 


It did for 2020.  You can deduct up to $300 of cash donations as an above-the-line deduction.  But no change for the current 2019 tax return.

Level 11

CARES Act $600 Charitable Deduction


@hanknjoyce wrote:

This is the deduction I was asking about. I copied this from the Make-a-Wish web site but it is mentioned a lot of places. It is an actual credit against AGI but my turbotax online does not indicate how/where to enter it (that I can find). Thanks.

 

 


We were typing at the same time.  That is for 2020, not for your 2019 tax return.

 

The CARES Act says $300, with no indicate that it would be $600 for a married couple.  However, I have not looked if there is any IRS guidance to clarify that.

View solution in original post

Level 15

CARES Act $600 Charitable Deduction


@AmeliesUncle wrote:

@DoninGA wrote:

The CARES act did not change the tax code to remove a charitable contribution from being an itemized deduction on Schedule A.

 

 


It did for 2020.  You can deduct up to $300 of cash donations as an above-the-line deduction.  But no change for the current 2019 tax return.


Thanks...Since we are only filing for tax year 2019, I did not specify the tax year in my answer.  Edited answer to indicate the tax year.

Level 2

CARES Act $600 Charitable Deduction

Thanks to All - I mistakenly thought it was for 2019 which I have not yet filed. No wonder I could not find any reference in Turbotax! Will file info away for next year!

Level 1

CARES Act $600 Charitable Deduction

The deduction is only $300, as someone else noted.  I can find nothing in my updated TurboTax Premier that mentions this deduction for non-itemizers.  From the September 2020 Journal of Accountancy I found: "Section 2104 of the CARES Act permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an "above-the-line" deduction, i.e., as an adjustment in determining adjusted gross income (AGI), for tax years beginning in 2020."  So why is TurboTax ignoring this item??

Level 15

CARES Act $600 Charitable Deduction


@stephenluck1 wrote:

The deduction is only $300, as someone else noted.  I can find nothing in my updated TurboTax Premier that mentions this deduction for non-itemizers.  From the September 2020 Journal of Accountancy I found: "Section 2104 of the CARES Act permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an "above-the-line" deduction, i.e., as an adjustment in determining adjusted gross income (AGI), for tax years beginning in 2020."  So why is TurboTax ignoring this item??


You can enter a cash donation in the Charitable Donations section of the program.  If you do not itemize your deductions then up to $300 of the donation will be entered on the Form 1040 Line 10b as an Adjustment to Income.

 

To enter charitable donations -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Charitable Donations
  • On Donations to Charity in 2020, click on the start or update button

Or enter charitable donation in the Search box located in the upper right of the online program screen. Click on Jump to charitable donation

Level 15

CARES Act $600 Charitable Deduction

charity 2020  $300.jpgcharity 2020  $300  2   .jpg

New Member

CARES Act $600 Charitable Deduction

Is January 20th and i didn't  recive my stimulus check jet.  My Bank said they didn't  recive anything ... Can you please give me a phone number for Turbo Tax that i can call and talk about?

Level 15

CARES Act $600 Charitable Deduction

You can claim it on your tax return.  

The IRS will stop mailing Stimulus checks on 1/15 so if you don't get it by the time the efiling opens on Feb 12  you can apply for the missing money on your 2020 return.  

 

The Stimulus Checks are really based on your 2020 return we are filing in 2021.  So any amount you already got will be reconciled on your 2020 return line 30.  If you didn't get a Stimulus Check (and qualify) or you qualify for more it will be added to your 2020 return.  But the good news is if they paid you too much they won't take it back.

 

When you go through the federal review tab it will ask how much you got if any.  Or to enter your stimulus payment in TurboTax, type "stimulus" (without the quotes) in the Search box, then click the link that says "Jump to stimulus."

 

After you have entered your tax information and are ready for the Federal Review, it will be the first question.

 

If you are trying to trigger it, you can go to Other Situations, answer any questions and click Done. The next automatic selection is Federal Review and it will ask about payments received.

Returning Member

CARES Act $600 Charitable Deduction

I am using the Downloaded version of TT Deluxe and so far all of the solutions I have read regarding this issue refer to the Online version of TT.

 

I do not have enough deductions to itemize this year, however I have made more than $300 in charitable cash contributions.  I have manually entered all of my cash contributions into the "Deductions and Credits" section of TT.  (I don't use ItsDeductible.)  However, even though TT is properly using the standard deduction for me it is not automatically applying $300 worth of my cash contributions to line 10b on form 1040.

 

When I run Smart Check, it realizes that I qualify for this "above the line deduction", but it wants me to manually type the amount directly onto line 10b.

 

How can I get TT to automatically carry the $300 of my cash contributions to line 10b???

Level 15

CARES Act $600 Charitable Deduction

You probably have to finish the deduction section.  

Go though the deduction section and enter your charity amounts.  Then keep going and finish that section.  It should say the Standard Deduction is right for you.  Then it will add the amount to line 10b.

Employee Tax Expert

CARES Act $600 Charitable Deduction

Yes, @VolvoGirl is correct. To get to the extra donation in Step-by-Step, you need to first click Done with Deductions.

 

When it is recommended that you take the standard deduction, keep answering the interview questions and Continue and you will eventually get to the Charitable Cash Contributions Under Cares Act screen, shown below where you would enter your cash donations.

 

 

 

To qualify, the IRS clarifies that the contribution must be:

  • a cash contribution;
  • made to a qualifying organization;
  • made during the calendar year 2020

For more information, see IRS Charitable Contributions Deductions

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