Charitable Cash Contribution Too Large

[Cynthiad66]

 Yes. There is an issue with the contributions deduction and TurboTax is working to fix it.  We do not have an estimated date of correction, at this time.  I suggest you check back often to see if the correction has been made.

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.

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.

[YgodY]

Thanks for copying and pasting the same useless response once a month while the number of days remaining until Tax Day continues to dwindle. Your colleagues have been working on a solution for 4 months and still haven't found it and still can't estimate when they might. What happens if it isn't fixed by 5/17?

[JamesG1]

@YgodY

Are you trying to file using the standard deduction or itemizing deductions? Is the software allowing you to change between standard deduction or itemized deductions at the screen Based on what you just told us....?

Are you able to access the Charitable Contribution under CARES Act interview questions after you pass the screen Based on what you just told us....?  Are you able to delete (not enter $0) at the screen Charitable Contributions under CARES Act?

Are you using TurboTax Desktop or an Online version?

Please clarify.

[sarahqscott]

I had been getting the charitable contribution too large error message, but this worked for me.  Had to enter the name of the places I donated to (I combined it all on one line) and then the total amount I donated to all the charities.  But I still chose the standard deduction.  

The other remedies suggested did not work for me but this did.  You can check to be sure it works when you review the paperwork -- it's the 10d line or somewhere around there.  

[hhll]

Why doesnt it get fixed. I paid real money for the software.

[JamesG1]

In TurboTax Online, Federal 1040 line 12b Charitable Cash Contributions under CARES Act can be entered or removed at either:

• Federal Taxes / Deductions & Credits / Your tax breaks / Donations to Charity in 2021 or 
• at the screen Charitable Cash Contributions under CARES Act immediately following Based on what you just told us, the Standard Deduction is best for you.

At which point are you entering the deduction?  It is also possible that there entry is at both places and is causing your error message. Make sure that you address the deduction being at either possibility. 

• You may want to remove the entries at Donations to Charity in 2021 by deleting the entries.
• Scroll to the bottom of the page and click on Wrap up tax breaks.
• You will see the screen Based on what you just told us, the Standard Deduction is best for you.
• At the screen titled Charitable Cash Contributions under the CARES Act, make sure that the box contains the amount of the deduction for which you qualify.  Enter $0 if you do not want the deduction.
• At Other Tax Situations, scroll to the bottom of the page and click on Let’s keep going.
• Continue through Review.

Go to Tax Tools / Tools / View Tax Summary / Preview my 1040 to view line 12b for the charitable deduction.

@hhll