There is some text on the site that clarifies this, but the Turbo tax system still encourages me not to submit my charitable deductions when taking a standard deduction, even though the CARES Act allows for $300 for those who take the standard deduction.
I had the same problem, waiting for there to be a correction that allows you to take it and still e-file.
This is a known bug and has been reported. Remove the amount as requested.
Go to the Charitable Donations section under Deductions & Credits to enter the $300 cash donation. This will correct the problem.
To enter charitable donations -
Or enter charitable donation in the Search box located in the upper right of the online program screen. Click on Jump to charitable donation
Thank you for this feedback. However, inputting the charitable donations does not change the amount of federal tax (in progress) turbotax says I owe, so perhaps the bug is still working there when someone takes a standard deduction.
@bmatty wrote:
Thank you for this feedback. However, inputting the charitable donations does not change the amount of federal tax (in progress) turbotax says I owe, so perhaps the bug is still working there when someone takes a standard deduction.
It should change after you work all the way through the Deductions & Credits section or by the time you get through Federal Review.
Look at your Form 1040 on Line 10b is where the cash contribution is entered. It must be a cash contribution and not more than $300.
You can view your Form 1040 at any time. Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
I loaded the updates today, 1/22/21. The $300 still not showing on 1040!
@hundie6369 wrote:
I loaded the updates today, 1/22/21. The $300 still not showing on 1040!
You have to complete the Deductions & Credits section. Then go through several screen until the program indicates you are receiving the Standard Deduction. The next screen asks for the charitable contribution.
Is this question only asked in the Premier version? I purchased the Deluxe version and it has not popped up despite going through the Charitable Contributions section several times.
The Charitable Donation screen will come up in all versions of TurboTax. Here are the steps to follow with your Online Deluxe
Click Deductions and Credits
Unlike a credit (which is a dollar-for-dollar reduction in the amount of tax you owe), a deduction impacts your tax liability differently depending on your tax bracket.
For example, an individual who falls into the 10 percent tax bracket would see a $30 change as a result of this deduction. For someone in the 37% bracket, however, the charitable contribution deduction this year would be worth $111.
The CARES Charitable Donation is a deduction, not a credit. That means that your tax bill will be computed as though you had made $300 less money in 2020. Your taxes will be reduced according to the tax bracket that you are in. If your income is in the 10% bracket, then your taxes will be reduced by 10% or $300 or $30.
A person in a higher tax bracket the deduction will be higher. If a person is in the 37% tax bracket, then their savings would be $111.
Tax Credits and Deductions explains the difference between these often confused terms.
@ nosandhokies
I used the free version to file, last night, using the Standard Deduction, and was allowed to enter $300 of my church tithes and offerings. The glitch seems to have been fixed, at least for the Free Version.
frustrating that TT has not fixed this bug yet, but I guess it's early - here's my experience that my help
I have the Deluxe version and have 220 of charitable deductions. Current 1040 indicates that I am taking the SD. The easiest thing to do is to use the 1040 Worksheet to Override that amount on Line 10b.
Interestingly, when I ran the Federal Review, one of the errors was "Charitable Deductions must be entered" with box 10b highlighted.
Nothing in the Charitable Contribution section which asks for any Cares Act stuff
I know, frustrating but an easy fix or wait and see if TT eventually fixes the bug
think I have figured it out, unforetunately by trying a few things. I will try to explain how I got it to work because it is not very straight forward.
Do under Deductions & Creit in the Step by Step - you have 2 choices - Guide me through (or something) & I'll choose - select guide me through it
go through all questions and you'll choose Done with Deductions - it provides a summary of your tax situation, then if you choose "continue" it will say "We have chosen the Standard Deduction for you"
Hit continue again and it will bring you to the Cares Act contribution and hitting "continue" again - this should deduct the amou nt
hopefully this helps - way to much time spent for the amount of tax savings
Different issue related to this. Turbo tax is suggesting I itemize and I want to itemize because Maryland does not recognize the federal standard deduction . So it says I should itemize but then includes the $300 and makes me take the Standard Deduction and it won't let me go back and change. Any advice
The federal tax reform of 2017 significantly raised the federal standard deduction. Under current Maryland law, if you take the standard deduction the federal level, you cannot itemize at the Maryland level. You may take the federal standard deduction, while this may reduce your federal tax liability, it may result in an increase to your Maryland income tax liability.
Go back to Deductions & Credits in the Federal section and click on Wrap up tax breaks at the bottom. Look for the screen below and look above "Change my deduction" if you do not see the "You've chosen itemized deductions, so let's keep going and lock that in for you."- click on the "Change my deduction" and it will take you back to this screen.
Yes, I have done this several times , but while is says it is choosing "Itemized" it is pushing the standard deduction through, so when you review , it is standard. No Schedule A, etc.
This TurboTax Help states:
I created a 2020 Federal tax return in TurboTax Online Free Edition. I was able to enter a $300 cash charitable contribution under Federal / Deductions & Credits / Donations to charity in 2020.
I was able to view the $300 deduction on the 1040 in TurboTax Online by following these directions.
If you are able to view the Federal 1040, the entries are on lines 10a and 10b and 10c. You can print or view your full tax returns prior to filing after you have paid for the software.
I was able to enter $300 at the end of the Deductions and Credits section when specifically asked the question by TT (Deluxe Version online).
However when I run through CompleteCheck before filing it tells me my cash contribution is too large, which makes no sense. Any help needed would be great, as this is driving me crazy, I just want to file!
This solution does not appear to work in TurboTax Deluxe. Cash donations to "The Nature Conservancy" (which is a 501(c)(3) organization that appears on the IRS Exempt Organizations Lookup Tool) do not reduce taxes. The method of entering cash donations from the "Donations to Charity in 2020" window in TurboTax Deluxe is done as follows.
. click on Start/Update
. click on Yes to enter donations for 2020
. enter charity name (i.e. The Nature Conservancy) and click the Add Money button
. select One time (for how often you gave), enter a cash amount ($300) and click on Done with This Donation
. click Done (to indicate that there are no more donations)
. click on Done with Charitable Donations
Nothing happens. Taxes are not adjusted for the $300 donation.
How do we get TurboTax to adjust taxes for the $300 donation?
No, that is not the way to claim the $300 charitable donation if you are claiming the standard deduction. Instead go to:
Feb 5 - I just checked again and it worked as explained above. The $300 was calculated in, and shows as a deducted amount. Seems to be correct now.
Thank you for this, but sadly $299 does not fix the issue. The problem is that TurboTax will not let me e-file with this "error" outstanding in CompleteCheck. This is clearly a bug. Is anyone aware of a way to contact TurboTax to fix this issue? Any help appreciated!
TurboTax ONLINE
Click Tax Tools on the left side bar
Click Tools from the drop-down
Click the "Topic Search" box on the screen
Type or scroll down to standard deduction and exemptions
Click GO
The next screen gives you an option to change your selection from Standard to Itemized and back. You do not need to change your selection
Scroll down to the bottom of that screen and click CONTINUE
The next screen is the Charitable Cash Contributions under Cares Act screen
IF YOU ARE CLAIMING STANDARD DEDUCTION enter the amount of cash contributions you made, up to 300
IF YOU ARE ITEMIZING DEDUCTIONS enter 0
Scroll down and click Continue
Click Continue on the next screen
DESKTOP
Go to Step-By-Step input
Click Federal
Click Deductions & Credits along the top
Click “I’ll choose what I work on”
Edit or Update Donations to Charity in 2020 if needed, then click “Done with Charitable Donations”
Scroll down the “Your 2020 Deductions & Credits” screen and click “Done with Deductions”
Click Continue on the “Let’s Check Your Deductions and Credits” screen
Continue through the following interview questions until you get to the “Here Are Your 2020 Deductions & Credits” screen
Click Continue
If the next screen says “The Standard deduction is Right for You!” click Continue
ON THE NEXT SCREEN enter the cash contribution made in 2020 and click Continue
Your 1040 should update
“The new "up to $300 above the line cash charity donation" is available for tax year 2020. This allows a Taxpayer to claim up to a $300 credit which is subtracted from income on the 1040 line 10c if the Taxpayer is claiming the Standard Deduction. (If you Itemize Deductions, all your donations will be listed on Schedule A.) “