Charitable Contribution Schedule A Line 12 Problem

[IRA2020]

IRS rejected my 2021 return. I made a large donation of stock that exceeded the 30% of AGI limit. I'm using TurboTax Deluxe Windows desktop.

• The IRS rejection notice states SA-F1040-027 - Schedule A (Form 1040), 'TotalCharitableContriAmt' must be equal to the sum of the following: 'GiftsByCashOrCheckAmt' and 'OtherThanByCashOrCheckAmt' and 'CarryoverFromPriorYearAmt'
• My Schedule A Line 12 is showing the total fair market value INSTEAD OF the 30% of AGI value
• The result is that Line 11 + Line 12 + Line 13 EXCEEDS the total donation showing in Line 14
• The total of my donations showing in Line 14 is correct. It's the sum of my cash donations and 30% of my stock donation's FMV. There was no carryover in Line 13.

I think there is a bug in TurboTax Schedule A Line 12 reporting

[DaraLO]

We would like to take a deeper look at this. To do so, we need a diagnostic file. This is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

1. Sign into your online account and Continue your return.

2. Locate the Tax Tools on the left-hand side of the screen. 

3. A drop-down will appear. Select Tools  

4. On the pop-up screen, click on “Share my file with agent.”

5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.

Please reply to this thread and provide the Token Number that was generated in the response.

[IRA2020]

Thank you for looking into this.

The token is 915330. 

[PatriciaV]

@IRA2020

Thank you for sending the token. We have reviewed your entries for Charitable Deductions, SmartCheck issues (there were none), and possible errors in Forms (there were none).

The calculations for the 30% limit of AGI appear to be correct, and Schedule A correctly labels the Line 14 total as "Limited." We were not able to test the e-file option without actually filing your return.

At this point, we would like you to Check for Updates under Online in the TurboTax header. Restart TurboTax and resubmit your return via e-file. If you receive another IRS rejection, please post the reject number so we can escalate this to our investigations team. We greatly appreciate your patience and assistance.

[IRA2020]

Your review of the Charitable Deductions entries, SmartCheck and Forms errors matches my experience. Naturally, I had checked for errors before I submitted my eFile and TurboTax had given me the ok.

The original rejection notice I received was:

SA-F1040-027 - Schedule A (Form 1040), 'TotalCharitableContriAmt' must be equal to the sum of the following: 'GiftsByCashOrCheckAmt' and 'OtherThanByCashOrCheckAmt' and 'CarryoverFromPriorYearAmt'.

I have decided to take an alternate route to filing my 2021 1040 so I will not be able to assist you with a resubmit.

However, for what it is worth, I believe I see the problem in TurboTax when I work the numbers by hand using Worksheet 2 in Publication 526. I took the most recent version posted on IRS.gov and it was the 2020 Publication 526 .pdf file.

• The relevant items are the following:
  • The Pub 526 Worksheet 2 total in Line 57 will match Line 14 in the TurboTax file you have; this is correct
  • Line 57 in the worksheet is simply the sum of two deductions, worksheet Line 30 and worksheet Line 55.
  • Pub 526 Worksheet 2 Line 30 should go in 1040 Schedule A Line 12
  • Pub 526 Worksheet 2 Line 55 should go in 1040 Schedule A Line 11
  • Pub 526 Worksheet 2 Line 57 should go in 1040 Schedule A Line 14
  • I think TURBOTAX mistakenly places Pub 526 Worksheet 2 Line 20 in 1040 Schedule A Line 12

[IRA2020]

I discovered there is a discussion of this problem in the Intuit Accountants Community. The community manager says "We're working on this!"

Here's the link:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/am-i-doing-this-incorre...