Charitable contributions deduction problems/errors

Forum|Forum|4 years ago
March 4, 2022
2 replies
7 views

I'm having significant issues with Turbotax not correctly reporting entered charitable contribution information (specifically noncash donations and carry forward data) on Schedule A, and it looks to me that the calculation of using current year deductions vs carryforward amounts isn't correct.

Is anyone else experiencing similar issues?

mike s2Author

Level 2

Further to this message, it appears that Turbotax has changed how carryforward amounts are displayed on Schedule A from showing the total amount of the carryforward from prior years to just the amount of the carryforward used in the current year.

But what still seems odd is that when I designate a portion of my cash donations in 2021 for 100% deduction, the software allows use of a portion of the current year appreciated securities donations, along with a portion of the carryforward for appreciated securities from prior years.

This seems odd; I'm not expert, but does anyone know if this is correct?

Turbotax team, can you respond? Wondering if there is a software calculation issue involving the of use of carryforwards and the interplay with the 100% deduction opportunity.

mike s2Author

Level 2

Further to my two messages above, I'm wondering if the problem is with the data calculated as presented in the "Charitable Deduction Limits Worksheet for Carryover Contributions."

Simply put, Turbotax is allowing me to deduct a partial deduction from current year appreciated securities donations as well as the same amount from carry forwards of the same type of donation.

Turbotax team?

medsmrc1

Level 2

"Re: Charitable contributions deduction problems/errors"

Mike,

I have continued studying this, since I am desperate and not getting any answers from TT 😞

I believe the whole TT worksheet (Charitable Deduction Limits Worksheet for Carryover Contributions" which you displayed is incorrect, in that

(1) it does not match the IRS worksheet format and calculation in Pub 526.

(2) Pub 526 clearly states that this work sheet is NOT for use with carryover amounts from the prior year, as stated on page 17: "You can't use this worksheet if you have a carryover of a charitable contribution from an earlier year." That worksheet is only for current year. TT puts prior year numbers into the worksheet.

(3) TT seems to be calculating carryover to next year somewhere internally, and it is claiming too many deductions in my case, so that some are wasted and not deductible, since they exceed income.

Note that the order for use of carryover contributions is also clear in Pub 526, page 19: "For each category of contributions, you deduct carryover contributions only after deducting all allowable contributions in that category for the current year. If you have carryovers from 2 or more prior years, use the carryover from the earlier year first.

I am having a similar problem.

TurboTax 2020 overcalculated the amount of allowable noncash charitable contributions on my 2020 return. It gave me a much higher deduction than is allowed by IRS, so now I must file a 1040x to make the correction. The program is not allowing it.

Can someone contact me to get this fixed. I have uploaded the return information and it can be found under Token # 973439. I don't have a lot of time to blog about this so a call would be prefered. [phone number removed].

Thank you.

despenla

Level 5

@mike s2
Mike,

How did you open this case?

I would like to open a similar, parallel case.

mike s2Author

Level 2

While logged in to Turbotax, I entered questions into the ? tab at the upper right corner. Eventually if you say "that didn't help" to enough questions an option should appear for someone to call you back. I did this a few times but have to say spent at least a few hours in total talking to people who tried to be helpful but didn't understand the topic. They may want to share screens and look at your input which is useless in solving the issue and they can't see a return file if you pull it up.

I would strongly suggest that you simply say that there is a similar case outstanding (INV 18814) and insist on speaking with Marty (last name not provided) a tax expert working on that investigation. That's the best advise I can offer. Maybe someone else has a different suggestion.

despenla

Level 5

Thanks, Mike, for the advice and tips on how to get help with these issues.

After getting in to the details, I have also found errors were in the 2020 return that I did not notice last year.

Thanks for starting your thread.

I have started a second thread (Error in Calculation of Charitable Deduction Limits Worksheet) and am investigating even another problem which may lead to a third one.

Thanks for your help.