Charitable Donations

Forum|Forum|5 years ago
February 16, 2021
2 replies
86 views

We made a transfer of stock donation to a Charitable Foundation which will allow us to itemize deductions for 2020. (Approximately double the amount of the standard deduction for a married couple filing jointly) In addition there were other donations of items/goods and cash to other organizations. The amount of total donations is less than 50% of AGI. Why is only a portion of the total donation showing up on Line 14? Approx 85% of the total donation appears on Line 14. We did a similar transfer last year and 100% of the donation amount was applied. Appreciate any help/advice.

Donations

Cynthiad66

Level 14

Yes. 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.

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Larry S1Author

Level 2

Cynthia, is there a time line when the IRS must have this completed? How will you (or I) be notified when the changes are made? Thanks for your help.

Larry S1

DaveF1006

Level 15

At this time, there is no timeline when the IRS will release the final update.

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philchid

Level 2

Turbo Tax 2021 has an issue in Schedule A line 14. It is limiting charitable contributions to 50% of AGI. In the CARES act it allows up to 100% AGI cash contibutions and up to 30% AGI for security contributions. This error was in Turbo Tax 2020 and was corrected later in the year. It needs to be corrected on Turbo Tax 2021. Any timeline on when this will be resolved?

BillM223

Level 15

Many federal forms are not yet released. This means that the software to drive the form has not been completed and tested, nor has the form been updated.

Last year, this was one example of the "moving the goalposts" that Congress did, that is, changing the tax code during tax season (instead of before tax season started, as is normal). Eventually, it was integrated into TurboTax for tax year 2020.

At the moment you will find that for many forms that are not yet released, that the changes made during last tax season are not in the current 2021 tax software. I expect that you will find that these changes will be addressed before the forms are made generally available.

Schedule A is not scheduled to be available until 1/20/2022. Please follow the availability of Schedule A and all federal forms at this link.

@philchid

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