Cash Charity deduction limits
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shishirshah
New Member

Cash Charity deduction limits

As per IRS publication, for year 2020, 100% of AGI can be deducted for cash donations. Turbo tax limits to donation for 60%.

 

Looking for way to get around this issue or if TT has a fix avail?

 

As per IRS Publication:

Temporary Suspension of Limits on Charitable Contributions

In most cases, the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction is limited to a percentage (usually 60 percent) of the taxpayer’s adjusted gross income (AGI). Qualified contributions are not subject to this limitation. Individuals may deduct qualified contributions of up to 100 percent of their adjusted gross income. A corporation may deduct qualified contributions of up to 25 percent of its taxable income. Contributions that exceed that amount can carry over to the next tax year. To qualify, the contribution must be: 

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

Contributions of non-cash property do not qualify for this relief. Taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.

2 Replies
Cynthiad66
Employee Tax Expert

Cash Charity deduction limits

 Yes. There is an issue with the contributions deduction and TurboTax is working to fix it.  We do not have an estimated date of correction, at this time.  I suggest you check back often to see if the correction has been made.

 

There is a problem with the Contributions section of the Itemized deductions and also the above the line $300.00 deduction.  Because of the many changes due to the CARES Act, IRS is still developing the forms and publications on this issue.  Last update was January 13th where everything is still in draft.  Once IRS finalizes the forms, we will be able to update TurboTax to accurately reflect your Contributions deduction.

 

However, this is a workaround that will fix your issue.

 

Follow these steps to resolve the issue:

  1. Open or continue your return.
  2. Select Personal (or Federal) and then Deductions & Credits.
  3. Scroll down to Charitable Donations and next to Donations to Charity in 2020, select Update/Edit/Revisit.
  4. On the Review All Your Charities screen, select Done with Charitable Donations.
  5. Select Yes on the Donation Limits screen.
  6. Select 100%/50% Charity on all applicable donations and Continue until completed for each donation.
  7. Once complete, line 14 of Schedule A will reflect the appropriate deduction amount.
shishirshah1
New Member

Cash Charity deduction limits

Seems like fix just came in. Thanks

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