Charitable donations with standard deduction

[deetrumpet]

California. 

I took the standard deduction on my federal return, and itemized deductions on the state return.  After many unsuccessful tries, I was able to eliminate the error-check problem, but I made no notes on how I accomplished that.

[chuckmeister]

"This is the at least second error I've found in TurboTax this year. The other is in the business version of the program and it was WORSE!!"

If ya don't mind, please tell me more.  I may be losing out on something and don't even know it.  Thanks!

[homesteader1]

@deetrumpet  Exactly the same problem with 2021 TT Basic.  This is definitely a TT accuracy problem.  Work-around don't change that truth.

When I do the Review tab, "Let's make sure your taxes are correct", TT changes it back to $300 causing a decrease in my refund.   Clicking through a few Continues comes to "Let's Check These Entries" and clicking on "Check Entries" shows the $300 in red.  I change it back to $600.  Refund goes back up and I click on "Run Smart Check" and all is well, and TT proceeds to go to the filing screens.  But if I ever make a change and rerun the "Federal Review", TT changes it back to the incorrect $300 without notice.  

Hey, I copied the following screen shot from the TT program.  What is this "100% accuracy guarantee" and how to I make a claim?  At a 25% marginal tax rate, the $300 mistake would cost me $75. 

[dellismom]

Thank you.  I don't see where to "Mark as best answer," but this is the one that worked for me.  

[chinga52]

TT program has an issue: with  "Standard deduction" & married.  A work around  (TT needs to resolve program) is to  "zero" out all you Charitable deduction. Then after "done with deduction"  TT will prompt you

Confirming Standard deduction. It will take you to the Cares Act  were you can enter $600.00. This will  alloow TT to pass all Federal Tax checks with "no error"

When you do this and filing your state Tax :  you will notice  your State return will be lower. This is because you zeroed out the charitable donation.  Under Forms: look for your state tax return and manual enter charitable donation on form.    This will  add charitable donation to state and recompute your State return amount.

So far this has worked!  and passes all TT checks

[AnnetteB6]

Based on a test case, the issue discussed in this thread appears to have been resolved within the program.  However, for anyone still having problems, see the information below:

For the 2021 tax return using the Married Filing Joint filing status, you are allowed to deduct up to $600 in cash contributions to charity without claiming itemized deductions.

If you are using the Married Filing Joint filing status AND using the standard deduction:

As you go through your Federal return and you have entered your charitable contributions, you will not see any additional questions regarding your inputs.  If your state return also allows you to deduct charitable contributions, then the amounts you entered will be taken into account on your state return. 

After you have finished your state return and you are getting ready to file, when you run the final Review, you will probably see this message:

1040/1040SR Wks:  Charitable Contributions:  Charitable contributions has an unacceptable value

You will also see a place at the top of the screen for Charitable contributions with '300' in the box.  Below that box, you can see your Form 1040 line 12a which shows the amount of your cash contributions that you already entered. 

If your line 12a is greater or equal to $600, enter '600' in the box at the top of the screen.

If your line 12a is less than $600, enter your line 12a amount in the box at the top of the screen.

After changing the input at the top of the screen to the correct value, proceed through any other errors that may pop up and then move forward to file your return.  It is very important that you do not revisit any other section of your return before you file or the change may not be retained or able to be changed a second time.

See the screenshot below for reference:

[homesteader1]

@AnnetteB6,  As you noted with underlined and italicized text in your reply, " It is very important that you do not revisit any other section of your return before you file or the change may not be retained or able to be changed a second time."

That is not a solved problem.  That is a work around defective software.  I'm still wondering about my prior post in this thread where I pasted a screen shot of the accuracy guarantee.  What does that guarantee provide to me if the software defectively calculates the $300 or $600 credit?   Even if someone manually fixes the program's inaccurate number, then they must be real careful to never "revisit any section of [the] return" before filing.  What?  You imply that an inaccurate program, that subsequently can't be used without breaking a manual work around, is normal.  Uggh...

[chinga52]

Just log into TT and download an update...

Looks like TT has made the correction regarding Married Couples+ "standard deduction" and Care Act  $600.00.  I reentered Charitable deduction  into program

Also, this helps you resolve State Tax  -   Charitable Deduction

[chinga52]

TT update Works    ......  Thank you

[plpollack]

Using TT Deluxe desktop.

As a programmer I have wondered how TT got such a "simple" check wrong.

At first I had entered some of my income and all of my charity and other deductions.  Given the lower income, TT did my schedule A, so no extra $600.

Then I added more income, and the higher limit knocked out my medical deds, so TT gave me the Standard Ded.  I did not at that time re-step thru the charity ded screen, so I THINK that TT therefore did not see that it needed to give me the $600 charity-with-Standard ded.

I never ever did see a special screen for the CARES Act, but when I tried to find it I did step back thru the charity screens, and now I've got the $600.

I think that's what's going on with the bug.  Anyone at TT confirm?

[Suna1]

I had the same problem.  I spoke to TT and was told to delete the listed charitable deductions since I ended up using standard deduction.  I deleted all of the deductions (>15) and the problem cleared.  If I use itemized deductions next year, I will have to manually re-enter my charitable deductions since I won't be able to import from 2021.

[chinga52]

Yesterday TT did download when I login.  It seems to have corrected issue with Standard Deduction & Cares Act ($600).

1. I reload my Charirable Deduction amounts

2. "select Done with Donation"

3. An did TT Fed Tax ..... No errors  and $600 was enter into line 12b

4. Did state tax: TT  included charitable amounts into State Tax

Note: TT did say if download does not work you would have to "zero" out charitable ded for Fed, and Follow the Cares Act prompt to enter $600.  Then you need to manual enter charitable into TT for state tax return.

[Dayna10]

While I could itemize deductions for my 2021 return, I will not do so, since the standard deduction is better for me. Same as I did last year, I entered the specific cash charitable contributions rather than just the total. When I go to wrap up tax breaks, the total charitable amount is reflected there and when Turbo checks the return, I get no charitable errors. Based on reading this thread, I should delete the specific contributions and just enter the total. Is this still necessary? I prefer listing the individual contributions as backup in the return. 

[JamesG1]

If you:

• Want to claim the standard deduction,
• Are able to report a Federal 1040 line 12b Charitable Cash Contributions under CARES Act, 
• Generate no errors upon Review, and
• Have no conflicts with your state tax return(s).

there is no need to make changes to your charitable contributions reported under Donations to Charity in 2021.

Regardless of how you report you charitable contributions, maintain a record of your charitable contributions with your tax file.

[chinga52]

TT pushed a download on Tuesday (2/22/2022)......It corrected the issue regarding Standard deduction and cares act ( $600.00)  Looks like the download resolved .   

Tested the download, reentered charitable deduction and ran TT Tax check  ........   Passed

Then I did State Tax: made sure charitable deduction were included  and state checks passed all test.

What i did & Recommend: Did a preview on TT and verify all your deduction have been entered on both Federal and State Tax after you do the TT Check.......

If Okay tour good to go