Itemized Charitable Deductions for 2020

Forum|Forum|5 years ago
January 9, 2021
1 reply
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Does anyone know when TTax will handle itemized charitable cash deductions for 2020? My program seems to work correctly in forms mode, but not otherwise. This is very confusing.

Best answer by SteamTrain

The difference, a very big one, is that in 2020 (and now 2021 also) cash deductions to 50% charities are 100% deductible, without subject to limitation. You can also use prior-year carry-forwards and carry forward any excess. So it's now possible to pay zero tax regardless of income if you itemize and have significant contributions. The program in Step-by-Step doesn't treat this properly, though the Forms version appears to be correct.

It was not clear to me you were testing the upper AGI limits, and that was what you were talking about (I see you did mention it later, bit I thought the 100% you mentioned was referring distinguishing between that , and to lower limits for certain types of donations to 20% or 30% organizations).....I certainly didn't test the usual "60%" AGI limit for cash to 50% charities....just that I could enter cash donations at will in the interview..

OF course there is a limit to to 2020 donations, it just happens to be 100% of AGI for 2020 taxes. So yes...for that part you may have to wait until later this month for it to be implemented...might even take software folks until Feb if they get hammered trying to implement al the other stuff Congress/President just enacted ridiculously late in the year.

NCperson

Level 15

it is - but it is confusing how it is doing it. Look on line 10b on form 1040. Is it there?

Critter-3

Level 15

Make sure you update your program at least once a week and do NOT make entries in the FORMS mode ... not only will it void the accuracy guarantee it may keep you from efiling. Make all data entries in the Step by Step mode.

pwshi1Author

Level 2

Line 10B on 1040 is covers charitable contributions for those taking the standard deduction. My problems are with itemizing.

Step-by-Step doesn't handle this properly; there are no questions about cash deductions to 50% charities. Meanwhile, the Forms section provides a box to tick for cash deductions to 50% charities (which leads to a correct 100% deduction for 2020).

When I return to Step-by-Step, however, these deductions disappear. I assume this will be fixed at some point. But sooner rather than later would be nice.