in [Event] Ask the Experts: Tax Law Changes - One Big Beautiful Bill
2007436
Keep getting error that my "contribution is too large" but it is below the 300 limit. Now it won't let me e-file unless I fix the error, but there is no error to fix.
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Yes. There is an issue with the contributions deduction and TurboTax is working to fix it. We do not have an estimated date of correction, at this time. I suggest you check back often to see if the correction has been made.
There is a problem with the Contributions section of the Itemized deductions and also the above the line $300.00 deduction. Because of the many changes due to the CARES Act, IRS is still developing the forms and publications on this issue. Last update was January 13th where everything is still in draft. Once IRS finalizes the forms, we will be able to update TurboTax to accurately reflect your Contributions deduction.
Here are some of the changes due to the CARES ACT
The new legislation allows tax deductions on two types of charitable gifts. First, it allows up to $300 given to a qualified charity to be claimed as an above-the-line deduction. After the Tax Cuts and Jobs Act, which went into effect in 2018, increased the standard deduction, many taxpayers had less incentive to donate to charities. Instead, they took the standard deduction and stopped itemizing.
For taxpayers who will itemize deductions, the CARES Act effectively suspends the limit on deductions for cash contributions to public charities for 2020. “That allows individuals to completely wipe out their AGI, and their tax liability, with a charitable contribution.
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
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 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.) “
This was happening to me, too. Seems like a defect.
Yes. There is an issue with the contributions deduction and TurboTax is working to fix it. We do not have an estimated date of correction, at this time. I suggest you check back often to see if the correction has been made.
There is a problem with the Contributions section of the Itemized deductions and also the above the line $300.00 deduction. Because of the many changes due to the CARES Act, IRS is still developing the forms and publications on this issue. Last update was January 13th where everything is still in draft. Once IRS finalizes the forms, we will be able to update TurboTax to accurately reflect your Contributions deduction.
Here are some of the changes due to the CARES ACT
The new legislation allows tax deductions on two types of charitable gifts. First, it allows up to $300 given to a qualified charity to be claimed as an above-the-line deduction. After the Tax Cuts and Jobs Act, which went into effect in 2018, increased the standard deduction, many taxpayers had less incentive to donate to charities. Instead, they took the standard deduction and stopped itemizing.
For taxpayers who will itemize deductions, the CARES Act effectively suspends the limit on deductions for cash contributions to public charities for 2020. “That allows individuals to completely wipe out their AGI, and their tax liability, with a charitable contribution.
I am itemizing deductions and getting an error at final review for row 10b (charitable cash contributions). It says I need to enter an amount IF I am taking the Standard Deduction. I am not taking the SD. Again, I am itemizing and entered in row 10a. It will not let me get past this error. Assume it is the same issue being described from other member. I will wait to see if it gets resolved.
Is the Standard Deduction within $300 of your Itemized Deduction?
If so, the program may have an issue since the Standard Deduction PLUS the "$300 above the line deduction" would be the better choice.
Could you be in that situation?
“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.) “
I have $245 in charitable cash contributions. It comes in on line 10a. But the error wants me to enter an amount on 10b but that is if you are taking a standard deduction. I’m itemizing my deductions.
Are you using TurboTax Desktop or Online.
Are your itemized deductions more than 245 MORE than the standard deduction?
Can you enter or change the number on line 10b to 0?
I am using the Desktop version. Yes my itemized deductions are more than the standard deduction.
I have entered "0" on Line 10b. I continue getting a flagged error for this.
This may be helpful.
If you are in TurboTax Desktop, the screen Charitable Cash Contributions under CARES Act appears as the end of Deductions & Credits. First you have to pass the screen Based on what you told us, the standard deduction is best for you at the end of Deductions & Credits.
But you have to qualify for the standard deduction before the screen appears. So you may want to change the value of one or more itemized deductions to $1 so that you qualify for the standard deduction. Follow these steps:
I am getting the same error and have been checking back for a month.
I am itemizing and have a sizable amount to pay. I understand that if I must pay I must do this by April 15. How do I do this if I cannot complete and submit????
I seemed to have resolved the issue. I had a zero on the line if I took Standardized. I removed the zero and the error cleared.
how do I efile then? it won't let me and I already paid $25 for the privilege in my state!!!
That questio was answered on March 1, 2021. It is NOW October 14, 2021. I have waited and 6 1/2 months later. Turbo Tax has STILL not 'fixed' this simple programming issue??
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