Charitable contributions deduction problems/errors

[mike s2]

I'm having significant issues with Turbotax not correctly reporting entered charitable contribution information (specifically noncash donations and carry forward data) on Schedule A, and it looks to me that the calculation of using current year deductions vs carryforward amounts isn't correct.  

Is anyone else experiencing similar issues?

[mike s2]

Further to this message, it appears that Turbotax has changed how carryforward amounts are displayed on Schedule A from showing the total amount of the carryforward from prior years to just the amount of the carryforward used in the current year.  

But what still seems odd is that when I designate a portion of my cash donations in 2021 for 100% deduction, the software allows use of a portion of the current year appreciated securities donations, along with a portion of the carryforward for appreciated securities from prior years. 

This seems odd; I'm not expert, but does anyone know if this is correct?  

Turbotax team, can you respond?  Wondering if there is a software calculation issue involving the of use of carryforwards and the interplay with the 100% deduction opportunity.

[mike s2]

Further to my two messages above, I'm wondering if the problem is with the data calculated as presented in the "Charitable Deduction Limits Worksheet for Carryover Contributions."

Simply put, Turbotax is allowing me to deduct a partial deduction from current year appreciated securities donations as well as the same amount from carry forwards of the same type of donation.

Turbotax team?

[RaifH]

I think to best diagnose your issue, I'd like to see the inputs on your tax return. You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[mike s2]

Thanks - I already provided this as part of INV #18814.

It appears to me that there is an error in how the use of prior year carryforwards is computed. 

I received the note below and then followed up by calling again saying that the error wasn't fixed (and I wasn't sure what this note really meant in terms of next steps):

Hello,

Thanks for letting us know about your issue with your charity contributions carryover. We apologize for any inconvenience this caused.

We appreciate your patience while we looked into your issue. After investigating the issue, we found that this information is pulled from the 2020 Carryover Worksheet.

If you’re still having trouble or there’s something else we can help you with, feel free to give us a call.

Thank you,

The TurboTax Help Team

[RaifH]

All charitable contributions from the current year must be deducted within the same category before using any carryover contributions from prior years. When I put in some test numbers in TurboTax, it calculated correctly. 

Did your charitable deduction seems to be drawing partially from prior-year contributions of capital gains before deducting the entire current year's capital gains donation? If so, maybe if you delete the prior-year ones and put them back in, it will calculate correctly. 

[mike s2]

The system is allowing a partial current appreciated security donation (which appears correct) and a partial use of a prior year carry forward for appreciated securities donations in the exact same amount (which seems erroneous).  I already tried deleting and reentering all charitable donation data.  I am guessing based on reviewing the worksheet for prior carry forward donations that something is incorrect with the calculation of the use of prior year carry forwards.  See previous note from TurboTax team.

[RaifH]

Can you find an item in your charitable contribution carryover worksheet that seems to be miscalculating?

Mine is correctly using the entire charitable contribution in 2021 of $34,000 of 30% AGI limit prior to using any of the carryover from 2020. 

If my entries are different than yours, please let me know so that I can re-create the error. 

[mike s2]

It looks to me that there are errors in lines 24 and 26, but hard to know where exactly the problem is without auditing the entire schedule/process of determining using prior year carryforwards.  What I do know is that I don't think I should able to use ANY prior years apprec. sec. carry forwards, and my current apprec.security deductions should be limited.  

The current year amounts seem correct; the error I think is that the system is allowing use of a prior year carryforward when it shouldn't.  It is exactly the same amount as the partial current year appreciated security deduction.

If you look at my return, I think the combination of cash and appreciated sec deductions should be limited to 50% of AGI plus any cash deductions elected for 100% deduction.  The return currently exceeds this amount by the amount of the use of the calculated allowable prior year carryforward for appreciated securities.

So, I know what item I think is incorrect but not where in Turbotax it is being calculated.  Someone who really understands the "Charitable Deduction Limits Worksheet for Carryover Contributions" should be able to identify this.

[mike s2]

Were you able to see the protected copy of my return data previously provided?

[SusanJR]

I am having a similar problem. My actual charitable contributions are about 75% of my AGI. That is being capped at 50% of AGI on Schedule A Line 11, then another equal amount of 50% of AGI (from 2017) is listed as carryover on Line 13. That puts my charitable donation deduction at 100% of AGI, but I also have property taxes of $10,000, so TurboTax is burning $10,000 of my charitable deductions carryover plus killing the effect of a foreign tax credit from some mutual fund dividends I have. How do I reduce the carryover amount? I cannot override it on Schedule A and there is no discernible way to do it in the Easy Step. Turbo Tax Team?

[despenla]

I am also having similar problems with the Charitable Deduction Limits Worksheet for Carryover Contributions.

I have determined that there is an error on line 39; this is line 53 on the IRS worksheet.  This throws off all the following calculations.

TT experts:  shall I open another case, so that we do not confuse the topic with the one under discussion with Mike S2?

There are additional problems in the forms, with the use of carryover from previous years.

TT experts: do you prefer to have a separate case for additional issues?

[SusanJR]

Yes, please open up a case if there are problems in the forms with use of carryover from previous years.

Thanks you,

Susan JR

[despenla]

I am searching for how to do that!  Please help!

[mike s2]

Thanks for the additional comments/insight.  After several phone calls trying to get help, I did speak yesterday with a Turbotax tax expert (Marty) and he understands my specific issues noted above.  I am expecting to hear back from him.  

It sounds like a comprehensive review of the Turbotax charitable deduction carryover worksheets/process is in order.

Turbotax team, please make sure Marty (re: INV 18814) is informed of the additional comments noted above.  Thanks.