Donations

[kpkeat616]

I am taking itemized deductions.  When a run the fed review I get an error message for line 10b. If I leave it blank and rerun the review, it shows and error.  If I enter $300, it still shows an error.  Under line 10a my charitable donations amount is shown on the line in the  ().  I can't seem to get around this.  Help.

Kathy Keat 

[email address removed]

[RayW7]

Entering this deduction is a two-step process...please see below:

For 2020, Congress has changed tax law to permit the deduction of certain charitable contributions “above the line”, even if the taxpayer is taking the Standard Deduction otherwise. The new deduction will appear on line 10b on the 1040.

There are restrictions: the contribution must be in cash or cash-equivalent and it cannot exceed $300 for most filing statuses (exception: $150 for Married Filing Separate).

To enter this deduction, you must enter the charitable contributions as if you were going to itemize these contributions (do a Search (upper right) for charitable contributions and click on the jump-to result). Be sure to indicate that the contribution was “Money” or else TurboTax will not ask about it later.

Note that you do not need to enter any other charitable contributions if you are not planning to itemize.

Then, in the Federal Review at the end of your data entry, TurboTax will realize that you are taking the Standard Deduction and ask you to enter the amount of the charitable contribution that was in cash. Note the limits described above ($300 or $150); in the desktop product, at least, if you enter an amount larger than this, you will be asked to reduce it to the limit when you enter the amount.

When you enter the cash-based charitable contribution this way, the result will appear on line 10b on the 1040 as an above-the-line deduction.

[TugBoat1876]

When we do a smart check on the Charitable Org it comes back with a error on 10b. Not understanding what you have written.  Shows standard and should be the other. Been trying to get this taken care of since March 5th. 

[kpkeat616]

I AM itemizing deductions.  When I run the review I was getting the 10b error.  My son and I reworked the entries and found that by deleting the entry under line 10a and deleting the worksheet in the forms screen, the error is gone.

[ReneeM7122]

Some of our customers have reported an issue in the software due to the CARES Act allowing non-itemizers to get a $300 credit for charitable donations in 2020.  The workaround is to delete the $300 in the error check. Then go back to Deductions & Credits and enter the contribution there, in the Donations to Charity topic. Then click Done with Donations and proceed through the screens until you get to the screen that tells you that TurboTax has added in the contribution.

The contribution will be back on Form 1040 line 10b, but it won't be flagged as an error. It only gets flagged if you enter it when prompted after you finish Deductions & Credits and the software tells you that you are getting the standard deduction. It will not get flagged if you enter it in Donations to Charity.

If you are itemizing, the workaround is to make the software stop treating you as an itemizer, which it must in order to get this $300 credit for you.  Here's what to do:

1. Delete the $300 in the error check.
2. Then go back to Deductions & Credits and enter the contribution there, in the Donations to Charity topic.
3. Then click Done with Donations and proceed through the screens until you get to the screen that tells you that TurboTax has added in the contribution.

 The contribution will be back on Form 1040 line 10b, but it won't be flagged as an error. It only gets flagged if you enter it when prompted after you finish Deductions & Credits and the software tells you that you are getting the standard deduction. It will not get flagged if you enter it in Donations to Charity.

@TugBoat1876