Turbo Tax program bug (?) associated with the $300 charitable Cares Act Deduction

[john1224]

I completed my taxes using the Standard Deduction. In this case Turbo Tax correctly inserts the $300 charitable giving (Cares Act) on Form 1040, line 10b.  NOW I go back into the return and check the box that asks Turbo Tax to change from using the Standard Deduction to recalculate everything using Itemized deductions.  It recalculates my taxes using Itemized Deductions BUT it does not remove the $300 charitable deduction on line 10b of form 1040.  I must go in a manually delete it.

[Cynthiad66 · Accepted solution]

Yes.  For the time being, you must manually delete it.  Turbotax is working on a Fix for this problem now.  

You can deduct charitable donations if you make them to qualified organizations and you itemize deductions. You're even allowed to deduct expenses directly related to charity work, such as mileage or parking. Keep your receipts or other documentation for all of your charitable donations with your tax records.

For this year, even if you don’t itemize, you may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualified organizations.

[john1224]

Hi john1224,   Cynthiad66 (Employee Tax Expert) posted a new reply in Deductions & credits on February 16, 2021 10:09 AM:

Re: Turbo Tax program bug (?) associated with the $300 charitable Cares Act Deduction   Yes.  For the time being, you must manually delete it.  Turbotax is working on a Fix for this problem now.

[dcnafzger]

Is there any estimate when this bug will be fixed?  I deleted the number for now.  My return is complete  except for the $300 Charity Tax Deduction bug issue. 

[john1224]

An update was released today.  I am not sure if it fixed the $300 Cares Act bug.   However if you have manually deleted the $300, you should be good to submit your tax return.  Regards

[MaryM428]

It is OK if the amount appears on Line 10b..  That shows charitable amount if you take the standard deduction.  If you are taking the itemized deduction, then that number will not be used.  You do not need to manually delete it.

The $300 cash donation can be used in addition to the standard deduction for 2020.

[john1224]

Mary,

   TurboTax had a bug whereby if one itemizes after previously selecting the Standard Deduction method,  the $300 Cares Act deduction still appeared as a deduction on 1040.  It should have auto removed it when the Itemized Deduction method was selected.  The latest update to Turbo Tax fixed the problem.

[Marisu]

Similar issue -  Itemized deductions are a few dollars (not $300) above standard deduction threshold. TT says standard is best way to go (correct) but does NOT insert the $300 into line 10b automatically. Well over $300 in cash contributions are within the itemized list.  Got an error mark with 10b highlighted in yellow. There was NO explanation as to why (I already knew, but still). I had to manually enter the $300. TT needs to improve this. Many will miss/misunderstand it since it is new for 2020 returns. 

[clow14501]

None of these "fixes" work for me.  Turbo Tax is still refusing to submit my form for e-file. So now I have to file by paper and delay my refund by weeks?  Just let us put in $0 and go forward.  If we don't care about the deduction we should be allowed to skip it!!! Does anyone out there really have a way to submit the form without the deduction???

[Cynthiad66]

Just a FYI, TurboTax has to work with the IRS when programming software for new deductions.  TurboTax cannot correct this problem until the IRS has finalized the forms.  IRS has been busy with the Stimulus program and is now gearing up in the tax refund and processing area.  We do not have a date and are waiting also.  Once the forms have been finalized, TurboTax will upgrade software, after all, the systems must be able to communicate to translate the tax information received.  Surely, this will be fixed prior to filing deadline.