Error in Charitable contribution deduction for non-itemizing marrieds filing jointly

[Lori202147]

For 2021, non-itemizing marrieds filing jointly can deduct up to $600 in charitable contributions. Turbotax enters this in its worksheet correctly. However, in the Review section, it removes the $600 and changes it to $300, thereby stating we owe more taxes. I believe this is a software error. I thought turbotax guarantees the highest return (?).

[JamesG1]

The software has to know that you qualify for the standard deduction.

Federal 1040 line 12b Charitable Cash Contributions under CARES Act can be entered at either:

• Deductions & Credits / Donations to Charity or
• at the screen Charitable Cash Contributions under CARES Act immediately following Based on what you just told us, the Standard Deduction is best for you.

TurboTax knows that you qualify for the standard deduction after you pass through the Deductions & Credits section.  At the section Deductions & Credits, scroll to the bottom of the page and click on Wrap up tax breaks.  

You should reach the  screen Based on what you just told us, the Standard Deduction is best for you. 

At the screen titled Charitable Cash Contributions under the CARES Act, make sure that the box contains the amount of the deduction for which you qualify.

At Other Tax Situations, scroll to the bottom of the page and click on Let’s keep going.

Review and go to Tax Tools / Tools / View Tax Summary / Preview my 1040 to view line 12b for the charitable deduction. 

[Lori202147]

@JamesG1, the software did know that I was taking the std deduction. And I did enter $2200 into the donations to charity. The top of turbotax showed the correct amount I owe the IRS, with $600 on the 1040, UNTIL I hit the Review button. At that point, the amount I supposedly owe changed by the equiv of the difference between $300 and $600 in deductions. and the 1040 showed only $300.  I did a work around and changed the 1040 form to show $600 instead of $300. It appears there's an error in the Review section for Marrieds Filing Joint.

[JohnB5677]

Yes, you can resolve this:

First you must clear all donations from the Deductions & Credits input screen

In the Desktop version:

1. Go to Deductions and Credits

2. Scroll to the bottom of the page

3. Select Done with Deductions

4. Let's check your Deductions .. Continue

5. Here are your 2021 Deductions ... Continue

6. The Standard deduction is right for you ... Continue

7. GET A TAX BREAK FOR DONATING CASH TO CHARITY

8. Enter your amount

Online version

1. Go to Deductions & Credits

2. Scroll to the very bottom

3. Select Wrap up Tax Breaks (Online)

4. Continue through the interview to 

5. Charitable Cash Contributions under Cares Act

6. Enter your donation.

[Lori202147]

@JohnB5677  Thanks! I'll try to remember that for next year.  But why was there such a problem with doing it the "normal" way?