Does an update exist for 1040-sr line 12c incorrect for standard deduction?

[zrtqw59]

when will fix for 1040-sr  lines 12-b and 12-c standard deduction be available?

[ColeenD3]

Form 1040-SR is the same as Form 1040. What are you seeing?

The standard deduction amounts are:

• Single filing status:
  • $12,550 if under age 65
  • $14,250 if age 65 or older
• Married filing jointly:
  • $25,100 if both spouses under age 65
  • $26,450 if one spouse under age 65 and one age 65 or older
  • $27,800 if both spouses age 65 or older
• Married filing separately — $5 for all ages
• Head of household:
  • $18,800 if under age 65
  • $20,500 if age 65 or older
• Qualifying widow(er) with dependent child:
  • $25,100 if under age 65
  • $26,450 if age 65 or older

[zrtqw59]

Here is the detailed scenario  (others have reported a similar problem):
 
I'm using Turbo Tax Premier.
I have entered all of my Wage & Income data. I proceed to the Deductions & Credit section and enter all other taxes, medical costs, and charitable contributions (which are all annotated as cash).  I proceed to "done with deductions".
 
The programs reviews my data and based on that it selects the Standard Deduction of $27,800 based on my age and the fact that I'm filing jointly. (The program also automatically chooses 1040-SR. I know that 1040 & 1040-SR are the same except for larger print for the SR.)
 
The next program generated summary screen of Deductions & Credits shows Charitable Cash Contributions of $300. This should be $600 as the program has selected the Standard Deduction, I'm filing jointly and I have entered over $1000 in Charitable Cash Contributions.
 
I select continue and proceed to Other Tax Situations. I work through that section and select Done with Other. The program is now ready to review my Federal Return. Next is a display what it has calculated for 2020 and 2021. It says I might qualify for another Tax break and after review say I do not. I press continue and come to Ready for Federal Review. I press continue--No Errors. I proceed to the State Return--No Errors.
 
I'm now at "Give us a minute to check things over". Analysis complete. Tax Summary for 2021 is displayed next. I press Continue. The next screen indicates that there is one area that I need to review. I press Continue. The next screen displays 1040/1040SR Wks  line 12c Charitable Contributions which has a value of $300. in red on a blue background. It also has the correct amount of my Cash Charitable Contribution on line 12a on a yellow background along with the proper Standard Deduction amount of $27800 with the message:
 
1040/1040Wks: Charitable contribution has an unacceptable value.
 
I proceed to correct the $300 to $600 and press continue.  I run error check again and get the same message.
If I change the value to $600 select Done and proceed I go on to Audit Risk and Filing sections and everything appears normal.
 
At this point I proceed to the Print Dialog and review the 1040-SR. Line 12a shows $27800. Line 12b shows $600 but line 12c, which is the sum of 12a & 12b is BLANK. Line 14, which is the sum of 12c & 13 is correct. All subsequent lines appear correct.
 
If I go to the forms menu and look at the 1040/1040SR Wks entries for lines 12a and 12b, they are both blue on a yellow background, signifying User Input. To me this means that the program did not calculate the values correctly initially and needs to be fixed.
 
Will Intuit guarantee the accuracy of the Return with these manual corrections without a program fix?  Will the the file pass the IRS edit with error on 1040-SR line 12c if I file electronically?
 

[thesardonic1]

I have the same problem in Free Edition.  1040 SR, Line 12c appears blank instead of showing the sum of 12a and 12b.  However, the real 12c calculation must be buried under the blank space since subsequent calculations using 12c are correct.

With Free Edition, I don't have access to editing specific entries on forms.  So if I e-file federal as it appears now, IRS could easily reject the calculations that would ensue from a blank line 12c.

This is clearly a bug.  Will a fix be offered?

[robotman2]

Same problem with TurboTax Deluxe for Mac

[zrtqw59]

Hi ColleenD3,

Can you answer the questions posed in my previous reply to you? If not, can you direct me to someone who can?

Thanks,

zrtqw59

[AnnetteB6]

For the 2021 tax return using the Married Filing Joint filing status, you are allowed to deduct up to $600 in cash contributions to charity without claiming itemized deductions.

If you are using the Married Filing Joint filing status AND using the standard deduction:

As you go through your Federal return and you have entered your charitable contributions, you will not see any additional questions regarding your inputs.  If your state return also allows you to deduct charitable contributions, then the amounts you entered will be taken into account on your state return. 

After you have finished your state return and you are getting ready to file, when you run the final Review, you will probably see this message:

1040/1040SR Wks:  Charitable Contributions:  Charitable contributions has an unacceptable value

You will also see a place at the top of the screen for Charitable contributions with '300' in the box.  Below that box, you can see your Form 1040 line 12a which shows the amount of your cash contributions that you already entered. 

If your line 12a is greater or equal to $600, enter '600' in the box at the top of the screen.

If your line 12a is less than $600, enter your line 12a amount in the box at the top of the screen.

After changing the input at the top of the screen to the correct value, proceed through any other errors that may pop up and then move forward to file your return.  It is very important that you do not revisit any other section of your return before you file or the change may not be retained or able to be changed a second time.

Note - making a correction to an input field does not invalidate the Accurate Calculation Guarantee.  Overriding an entry does.

See the screenshot below for reference:

@thesardonic1

@robotman2

@zrtqw59

[zrtqw59]

AnnetteB6

Thank you for the reply.

I have found that what you say is true. However, this does not answer my original post.  TurboTax automatically selects form 1040-SR if you are over 65 years old. If I proceed as you say line 12c, the sum of  lines 12a&b, is still blank, as of the 2/14/22 program updates.

All subsequent lines appear correct. Even though this passes the TurboTax edits, will it pass the IRS edit if one files electronically?

I have found that if you go to the forms view and update the "info" worksheet to select form 1040, line 12c is properly filled and otherwise look identical to form 1040-SR in all lines. I this an acceptable workaround?

In any event, the fix you propose is still a workaround, as the program is still generating an error, when it has

the charitable amount and filing status info on which to base either a $300 or $600 deduction. On previous summary screens during the review following the Deduction section, it does show the correct $600 amount

and only during the final review, does it substitute the $300 value as an error.  This should be corrected.

[DianeW777]

Yes, this will pass the IRS e-file requirements when you select to e-file your return. It is an acceptable workaround as our awesome Tax Expert @AnnetteB6 provided for you and it has been submitted for investigation.  It's been an unprecedented couple of years filled with changes and challenges for everyone. 

@zrtqw59

[robotman2]

zrtqw59 is right.  This is a workaround to file, but seems like a simple coding error to fix.  Probably not high priority, but easy to fix.  Thanks to AnnetteB6 for the full kit workaround.  Hopefully fixed soon.

[zrtqw59]

Diane777,

Thanks to you and  AnnetteB6 for the clarifications. I am sure that this will be properly fixed at some point, but

if this will work without error, then I will proceed as this is the only thing that's holding me back from filing now.