Charitable Contributions Error

[Nice1]

When I  go into review, I get error: Cash Charitable is too Large.  I entered $275 for cash charitable contributions and I am not itemizing.

I use TT Home and Business

Why error and is this being fixed.

[KathrynG3]

This result occurs depending on the sequence of charitable donation entry details. It can be corrected. 

Return to the Donations section of your return, remove your entry in the CARES Act Charitable Donation screen, and enter it first in the regular charitable donations section so that you will receive the $275 above the line deduction without error.

The extra cash donation is allowable up to $300 for all taxpayers except married filing separate, who would each have a maximum of $150.

To do this in TurboTax, follow these steps:

• First, enter in the charitable donation amount as you normally would.
  • From the left menu, select Federal.
  • Select the second tab from the left across the top, Deductions & Credits.
  • Scroll down to Charitable Donations.
  • Enter your details.
• When finished entering all donations, select Done with Charitable Donations and Continue.
• Scroll to the end of Deductions & Credits and select Done with Deductions.
  • You may need to respond to any other additional questions. You will eventually see: The Standard Deduction is Right for You! 
  • Click Continue.
  • Now, you will see Charitable Cash Contributions under Cares Act where you will see any qualified contribution amount already entered from your earlier posts. Select Continue.
    • If you have entered something else in this field, delete it so that TurboTax will calculate it automatically.

For more information, see: Charitable Contributions - TurboTax Tax Tips & Videos

[dfernand47]

The Contribution error continues with 2021 software.  This year the maximum deduction has been expanded for those who do not itemize; $600 for married couples, $300 for singles.  Turbo Tax ( Premier) only allows $300 for married.

PER IRS:

COVID Tax Tip 2021-143, September 28, 2021

Recent legislation includes several provisions to help individuals and businesses who give to charity. The new law generally extends four temporary tax changes through the end of 2021. Here's an overview of these changes.

Deduction for individuals who don't itemize

Usually, taxpayers who take the standard deduction cannot deduct their charitable contributions. The law now permits taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions they made to certain qualifying charitable organizations.

These taxpayers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions to qualifying charities during 2021. The maximum deduction is $600 for married individuals filing joint returns.

[DoninGA]

@dfernand47 The software has not been updated to the maximum amount of $600 for MFJ.  The IRS has not finalized the Form 1040 which has the charitable contribution on Line 12b.

[Critter-3]

The estimated date for the form 1040 to be ready is currently 1/6/21 subject to change of course. Hang in there as multiple updates are yet to come.  

[ZOT]

This error subsequently causes an error on the Idaho state tax filing in Turbo Tax as well.  I saw a work-around for the error in dollar amount for Married Filing jointly and who are using the standard deduction on the Federal Return.  Initially the amount on line 12b auto-fills with $300.  Because the dollar amount should be $600 you need to go back into the deductions and indicate you want to change from standard to itemized deductions.  It will then auto-fill with the correct $600 amount.  You then go back again to deductions and switch it to standard deductions.  Review and you'll see that the $600 sticks.  

This does not resolve the problem in the Idaho tax state form.  It still sees a $300 amount and causes an error when you run the error checking program when finished.  if you remove the $300 (even though it should be showing $600 (I suppose), your expected Refund is reduced.

I've put in a support ID and phoned Turbo Tax.  I told the agent to make it an urgent request.  I'm not satisfied that the problem will get appropriately addressed or a bug fix implemented in a timely matter.  I hope I'm wrong because I'd like to submit my taxes with error free forms.  Guess the alternative is doing them myself and using snail mail.

[KrisD15]

The error from tax year 2020 (tax returns being done in 2021) was a bit different. You are replying to an old thread 

Please try the following:

Please return to the Deductions & Credits section, scroll down to "Charitable Donations" and DELETE any cash entries you made there. 

(Some states allow you to Itemize Deductions when taking the Standard Deduction on the Federal Return. To include charitable donations as Itemized Deductions on your STATE return, you can enter the donations as "Items" select "I'll value them, select "Other intangible property" enter the description as cash if it was and the amount as the value.)

Go back through the review. The program will ask you for your charity donation again although it may not be until the END of the FINAL REVIEW.  (After the "Tax Summary for 2021" screen)

 Enter the amount up to 600 Married Filing Joint.

The Tax law allows a Taxpayer to claim Charity Donations on their Schedule A or, if using the Standard Deduction, on their 1040 line 12b as an addition to their Standard Deduction amount. 

This amount can be up to 600 for Married Filing Joint, or 300 for all others.