COVID charitable deduction $300

[hellocat]

How do you fill this in Turbo Tax.

[DanaB27 · Accepted solution]

Yes, this year you can claim $300 as an adjustment to income (line 10b) if you made a cash contributions to a charitable organization, while claiming the Standard Deduction.

1. Open you return
2. Click "Federal"
3. Click “Deductions &Credits” on the top
4. Click "I'll choose what to work on"
5. Scroll all the way down and click the "Done with deductions" button
6. Continue after the "The Standard Deduction is right for you!" screen
7. Continue until the "Any charitable cash contributions" screen
8. Enter the charitable cash contributions you made (up to $300).

[jerryschmitt]

What works is going to "Federal Taxes", then "Smart Check" and go down the list of issues until you find one that allows you to enter the $300 credit. Of course it isn't a tax credit but and an income deduction. Other methods simply didn't work.

[Ricogwsa]

Thank you - this worked.  I had already filled in my charitable donations but turbo tax didn't give me any credit since I used the Standard Deduction.

[DianeW777]

If you need to amend your tax return to include the $300 charitable donation, you can do that by using the instructions below.

The good news is that you can e-file the amended return when it is available (late March)and will be a much faster and smoother process than mailing.

Follow the steps provided in the links below before you try to begin your amended return.

• How to amend (change or correct) a return already filed (and accepted at the IRS)
  • Review the information here to be sure you need to amend your return.
• Steps to amend my 2020 return

An excerpt from the IRS Form 1040-X Instructions:

• You should generally allow 8 to 12 weeks for Form 1040-X to be processed. However, in some cases, processing could take up to 16 weeks. Go to Where's My Amended Return on IRS.gov to track the status of your amended return. It can take up to 3 weeks from the date you mail it to show up in our system.

To enter charitable donations follow these steps (or use the information that worked for you in the 'Smart Check'.

1. Click on Federal Taxes (Personal using Home and Business)
2. Click on Deductions and Credits
3. Scroll down to Charitable Donations
4. On Donations to Charity in 2020, click on the start or update button

Or enter charitable donation in the Search box located in the upper right > Press enter > Click on Jump to charitable donation

[brandok7]

I have tried these exact steps ten times and every time when I go through the smart check at the end for Federal it says my charitable gift was unallowed per the tax breakdown. Thoughts?

[KrisD15]

TurboTax ONLINE

Click Tax Tools on the left side bar

Click Tools from the drop-down

Click the "Topic Search" box on the screen

Type or scroll down to    standard deduction and exemptions

Click GO 

The next screen gives you an option to change your selection from Standard to Itemized and back. You do not need to change your selection

Scroll down to the bottom of that screen and click CONTINUE

The next screen is the Charitable Cash Contributions under Cares Act screen

IF YOU ARE CLAIMING STANDARD DEDUCTION enter the amount of cash contributions you made, up to  300

IF YOU ARE ITEMIZING DEDUCTIONS enter 0

Scroll down and click Continue

Click Continue on the next screen

DESKTOP

Go to Step-By-Step input (top right corner of screen)

Click Federal

Click Deductions & Credits along the top

Click “I’ll choose what I work on”

Edit or Update Donations to Charity in 2020 if needed, then click “Done with Charitable Donations”

Scroll down the “Your 2020 Deductions & Credits” screen and click “Done with Deductions”

Click Continue on the “Let’s Check Your Deductions and Credits” screen

Continue through the following interview questions until you get to the “Here Are Your 2020 Deductions & Credits” screen

Click Continue

If the next screen says “The Standard deduction is Right for You!” click Continue

ON THE NEXT SCREEN enter the cash contribution made in 2020 up to 300 and click Continue

Your 1040 should update

“The new "up to $300 above the line cash charity donation" is available for tax year 2020. This allows a Taxpayer to claim up to a $300 credit which is subtracted from income on the 1040 line 10c if the Taxpayer is claiming the Standard Deduction. (If you Itemize Deductions, all your donations will be listed on Schedule A.) “

[jerryschmitt]

I do understand your frustration. Been there. One possibility ... I think you have to list qualified charitable donations in excess of $300 even if you take the standard deduction and then it allows the $300 income reduction. 

Tax folks are smart ... They call it a tax deduction but it's really an income deduction. Big difference.

[LEE512]

I have completed my tax return, which reflects the $300 charitable donation deduction allowed for those taking the standard deduction.  However, as of 4/5 TurboTax still won’t transmit my return -- it returns me to the entries on line 10a or b (hard to tell), saying “Charitable contributions has an unacceptable value.”  My Line 10b reads $300.  Shouldn't TurboTax tell me what's going on?  How long do I wait before printing and submitting my return by mail?

[jerryschmitt]

Beats me but ... If it's on line 10a that would be a problem. It needs to be on 10b. You should be able to check by opening the "Forms" + "Form 1040".

I took the standard deduction. If you itemized it may be looking for applicable itemized charity deductions for justification. 

I don't know if tax forms are getting more complicated or TurboTax is making it worse than it should be but it seems to be more difficult every year.

[KathrynG3]

Regarding the charitable donation deduction related to the Cares Act, the issue is the order of operations. TurboTax is interpreting the entry as an override.

To clear the entry error for the Cares Act above-the-line deduction, leave it blank or do not otherwise adjust the amount in this box. Any donation must be entered in the regular section first or an error may result. 

To qualify for the Cares Act above-the-line deduction up to $300 for all taxpayers except married filing separate, who would each have a maximum of $150, for standard deduction filers, the IRS clarifies that the contribution must be:

1. a cash contribution;
2. made to a qualifying organization;
3. made during the calendar year 2020

To enter charitable donations in TurboTax, follow these steps:

• From the left menu, select Federal.
• Four tabs will appear across the top of your program. Select the second tab, Deductions & Credits.
• Scroll to Charitable Donations and select Start to begin. 
• Answer Yes to Do you want to enter your donations for 2020?
• For each donation, follow these steps:
  • Enter who the donation was to at Let's enter your donations one at a time and indicate what type of item was donated, either an Item, Money, Stock, or Mileage and travel expenses
  • Follow the prompts from there, and enter the amount of the donation 
  • When finished, select Done with This Donation.

Next, run through all the deductions and credits and click Wrap Up Tax Breaks again to trigger the Cares Act Charitable Donation screen so that it will automatically calculate. Leave this cell blank. The information entered in the regular area will be calculated automatically and the maximum allowable deduction will be added.

Do not enter anything more for the amount. If there is an amount prepopulated here, do not adjust it. Proceed through the rest of the interview.

Run the Review again. This should clear the error.

For more information, see IRS Charitable Contributions Deductions.

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@LEE512

@jerryschmitt