When I enter both cash and non-cash contributions to private foundations (30%/20% charities), the cash contributions show up under column (d) "100%" of Part I of the "Charitable Contributions Summary" instead of column (c) "30%". I believe column (d) is new for 2020 and was created because of the CARES act passed around March or April 2020.
Non-cash contributions are treated correctly. In Part II, they show up under the 20% column.
I've been trying all day to reach TurboTax by phone and other means but they keep transferring me to the wrong people (general help, CPAs, etc) - I think this is a software bug.
Most of the CARES act changes have not been incorporated yet because the IRS is still working on the final version and must then issue the electronic file specifications for the changes. (Probably Feb sometime).
I was assuming that the CARES changes had been incorporated for this form/worksheet because TurboTax seems to apply the correct deductions for cash contributions up to 100% of AGI, a provision which didn't exist prior to CARES.
Also, the bug I'm reporting is about the treatment of cash contributions to private foundations, which is unaffected by CARES - I only mention CARES because TurboTax now puts such contributions under the CARES 100% column when it should have remained in the old 30% column.
That worksheet is an internal TurboTax worksheet and not an IRS form. Both the 2020 1040 instructions and Schedule A instructions are still in the draft state at the IRS, so until they are complete and released, the IRS will not release the form electronic specifications (schemas) that tax software is programed from so that it is compatible with the IRS computers.
It doesn't look like this error has been fixed ... surely by now the IRS would have finalized the forms?
Still not fixed.
Does anyone know how to report such problems to TurboTax? Every time I contact them they route me to someone who is trying to help me with the software, or to a CPA, but I'm trying to report what I think is a error in their software ...
We will route your issue to the correct team to look at the error you saw regarding cash contributions to private foundations. Thank you.
In the meantime, here is a helpful TurboTax article.
Here are some of the changes due to the CARES ACT
The new legislation allows tax deductions on two types of charitable gifts. First, it allows up to $300 given to a qualified charity to be claimed as an above-the-line deduction. After the Tax Cuts and Jobs Act, which went into effect in 2018, increased the standard deduction, many taxpayers had less incentive to donate to charities. Instead, they took the standard deduction and stopped itemizing.
For taxpayers who will itemize deductions, the CARES Act effectively suspends the limit on deductions for cash contributions to public charities for 2020. That allows individuals to completely wipe out their AGI, and their tax liability, with a charitable contribution.
Adapted from Cynthiad66:
Thanks. Just wanted to note that the error is still present with the most recent update.