Itemized vs Standard - looks like a bug?

[JKJ99]

I entered all my deductions then the software reports "Good news.  You are getting the standard deduction of $24800".  The NEXT screen says, "We have chosen itemized deductions for you of $25045".  When I look at the summaries, they all show $24800.  Review of the return says there is 1 error on 1040-SR line 10b which forces you to put in a non-zero value for charitable contributions if you take the standard deduction.

Gotta say, I am at a loss.  :(

[KrisD15]

Hard to say without looking, BUT I think the 300 above the line charitable contribution deduction might have something to do with it. 

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.) 

Sounds like you are right on the edge. Standard deduction is 24,800.

Your Itemized was 25,045, but you can take the Standard (24,800) PLUS the 300, so that is 25,100 which is better than 25,045.

Make sure you take that 300 charitable contribution on line 10 since it won't be on Schedule A since you're not itemizing. Don't enter Zero, enter 300 if you had at least $ 300 donations in 2020. 

Here is how to get that additional 300 on line 10 (the 300 is added to any other subtractions you might have on Schedule 1. )

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.  From what you said, you will choose Standard.

Scroll down to the bottom of that screen and click CONTINUE

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

Enter 300 if you made at least 300 in donations in 2020

Scroll down and click Continue

Click Continue on the next screen

You should now be getting the Standard Deduction (24,800) and a deduction of at least 300 on your 1040 line 10. 

If you want to check using TurboTax Online:

To verify, click “Review” if necessary, in order to get Tax Tools on the left side bar

Click Tax Tools on the left side bar

Click Tools on the drop down list

Click “View Tax Summary” on the “Tools Center” screen

When the next screen appears (Review Tax Summary) ON THE LEFT SIDE BAR you should see “Preview my 1040”

Click “Preview my 1040” on the left side bar

Scroll down to line 10b on the 1040. The “above the line” charity contribution should now show 300 and that should carry down to 10c.

[myfriend09]

i'm well under the standard deduction, but force itemized just to see what it looked like. when i do, the $300 above-the-line charitable contribution remains. i thought it would disappear since itemizers are not eligible. ??

[npierson7]

No, it shouldn't disappear. Under the new change, individual taxpayers can claim an "above-the-line" deduction of up to $300 for cash donations made to charity during 2020. It is deductible in addition to standard deduction. 

[VolvoGirl]

Actually it should go away if you take Itemized Deductions instead of the Standard Deduction.  It might be a bug or you have to finish the deduction section all the way.

[myfriend09]

Thanks for the reply. The article below from the IRS website makes it sound like itemizers can't, but I guess they're trying to say it's designed to benefit standard deducters, without saying that itemizers can't. A little misleading. 

https://www.irs.gov/newsroom/special-300-tax-deduction-helps-most-people-give-to-charity-this-year-e...

"The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted last spring, includes several temporary tax changes helping charities, including the special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizing their deductions."

I did find another article that says it doesn't matter, but they don't cite the authoritative guidance.

https://www.kiplinger.com/taxes/tax-deductions/601279/do-you-qualify-for-a-300-tax-deduction-under-t...

"Taxpayers can take this universal deduction no matter whether they itemize or take the standard deduction on their taxes."

[HOLLYIOWA]

I am seeing a related issue with downloaded Deluxe.   My itemized deductions are less than standard.   Schedule 1 is not showing in "Forms in My Return"-- which makes some sense.   However, in 1040WS, on line 10a,  shows as blank (this makes sense) but "smaller of these contributions or $300" is posting as full amount of charitable, and 10b has to be manually entered as $300.   This has the effect of messing up Iowa form, which allows charitable deductions but requires split between spouses on a joint return.