Charitable donations with standard deduction

[arvi]

Here's the situation: I made 2 donations in 2021, one for $100 and one for $300-- entered all the info under deductions.  TurboTax chose standard deduction for me as best option.  I finish my taxes and go to do smart check and i have an error: "1040/1040SR Wks: Charitable contributions: Charitable contributions has an unacceptable value."  Then it shows a box with 300. and a label Charitable contributions.

What am I supposed to do?

I understand that I can only claim $300 deduction if taking standard deduction, but TT keeps showing an error?

Thanks

[DoninGA · Accepted solution]

Using the TurboTax desktop editions -

To remove the error I went into Forms mode and deleted the Charitable Organization Worksheets.  Then on the Form 1040 Worksheet for Line 12b removed the $300 amount so Line 12b is now blank (empty).

Going back to Step-by-Step I completed the Deductions & Credits section without entering anything for a charitable donation and click on Done with Deductions.  Continuing through the screens until landing on the screen labeled Charitable Cash Contributions under Cares Act, I entered $300.  Continued through Final Review without error.

For the TurboTax online editions -

The problem appears to be that a charitable donation was entered in the Deductions and Credits section of the program when you are only eligible for the Standard Deduction.

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

Scroll through the all the forms, schedules and worksheets listed and delete all the Charitable Organization forms listed.

When completed with removing forms click on Continue With My Return at the bottom of the list.

Click on Federal on the left side of the screen

Click on Deductions & Credits at the top of the screen

Scroll down to the bottom of the page and click on Wrap up tax breaks

Continue through the screens.  After the screen showing that you are getting the Standard Deduction the following screen is Charitable Cash Contributions under Cares Act.  Enter $600 if filing Jointly or $300 for all other filing status'.  The federal review and the Final Review should no longer show an error for the charitable donation.

[arvi]

THANK YOU!

[zoso1]

I read your reply - thanks!

I followed the steps you mention - I deleted the donation worksheets - then on step by step I didn't enter any donations I made - clicking through all the questions I never encounter the Charitable Contributions Under the Cares Act.

Where is that located?

[JohnB5677]

For 2021 TY, you can claim an "above-the-line" cash donation of

up to $300 for singles and $600 if married for cash donations made to charity.

In Turbo Tax, the amount of cash donation will be posted only if you have not entered the cash donation in the “charity” section and only if you use the “standard deduction”.

You must click the “Wrap up tax breaks” at the bottom right of the Deductions & Credits page.

You will be asked the question 

1. Let’s Check for Charitable Donations

2. Did you donate to charity?

3. Answer NO … Continue through the interview

4. Get a tax break for donating cash to charity

5. Post $300 or $600 as appropriate

[zoso1]

I'm not seeing the Wrap up tax breaks at the bottom right. What am I missing?

[DoninGA]

@zoso1 The Wrap up tax breaks is shown on TurboTax online edition only.  Using the TurboTax desktop editions click on Done with Deductions.

[ErnieS0]

Use the Forms mode in the Download/CD version of TurboTax to enter your "above the line" charitable deductions @zoso1,

1.  Click on Forms in the upper right corner (next to Flags and Notifications)
2. Once you are in Forms, select 1040/1040SR Wks (the top choice in the left column)
3. The form will open in the big window on the right
4. Scroll down to lines 12a and 12b and enter $400 in each box
5. Click on Step-by-Step in the upper right where Forms used to be to get back to the interview mode

I'm using a SINGLE taxpayer in the screenshot

[chinga52]

In 2021, I donated over $2000. TurboTax -for Standard deduction: deducted $300 .

Should it be $600.00

Also, Hawaii State Deduction: I get an error  on Worksheet A-3 for Mortgage .The amount I entered in TurboTax from 1098 Mortgage is 641.58 .  How do I address this error

[wbvogel]

The answers provided do not address my situation. My charitable contributions exceed the standard deduction. If I answer NO to the question "Did you donate to charity?" then I lose some significant deductions.

12b. only asks you for charitable contributions if you take the standard deduction. I am taking the Itemized deduction (as recommended by TurboTax). This makes no sense.

Thanks

[deetrumpet]

@arvi @wbvogel @chinga52 @ErnieS0 @DoninGA   Tax year 2021. I'm having a similar problem, and the posted solutions (up to Jan. 29) don't work for me. I'm using 2021 Desktop TT Premier, CD-ROM.  I'm filing MFJ, taking the standard deduction. I donated $750 cash to charity, and so I'm entitled to a $600 deduction on line 12b of form 1040.  My problem is that TurboTax keeps overriding my $600 entry and changing it to $300.  I've double-checked that I've checked the MFJ box, and that I'm taking the standard deduction, and that my charitable donation entries show they are cash donations. (TT seems to call them "money," not "cash."

In tax year 2020, the limit for MFJ was $300. Could TT have overlooked this change in the law for tax year 2021 that raised the limit to $600 for MFJ?

What should I do next?

[Airb]

DoninGA's response was spot on!

I took my Donation out of the Worksheet and let the Step-by-Step resolve it for me.

I think Intuit should have flagged it when I was manually adding Charitable Donations.

[chinga52]

True  - made changes to include charitable donation of $600.00  for Married + Standard Deduction.

However, after doing TurbTax Federal Tax  check, Turbo Tax changes it back to $300.00 and flags Error.

TurboTax needs to flag this Federal Charitable Tax donation and update Federal Tax software

Don't know what else to do?

[chinga52]

True  - made changes to include charitable donation of $600.00  for Married + Standard Deduction.

However, after doing TurbTax Federal Tax  check, Turbo Tax changes it back to $300.00 and flags Error.

TurboTax needs to flag this Federal Charitable Tax donation and update Federal Tax software

Don't know what else to do?

[Jason707]

I just had this issue and a turbo tax person told me to delete the donation under deductions/credits screen and then enter the donation amount under the ACA donation screen. I did this and it fixed it BUT this in turn lowered my State refund by over $100. 

So I went back and re-entered my cash donation and got the same error. Next when I ran an error check the software pulled up the 1040 form Line 12(b) and I changed the $300 to $600 and it corrected it, no errors and I now have the proper refund amounts for fed/state.