TurboTax reduces amount of cash charitable contributions (1040 Line 12b)

[joannekemp]

I am trying to complete our 2021 taxes using TT Deluxe.  We are married filing jointly. We had $1,000 in cash charitable contributions, which were entered correctly. When I review our return, we keep getting an error message regarding the amount listed on 1040 Line 12b.  It is showing a value of $300, but should be $600 per the instructions.  I can update the amount, but TT changes the amount back to $300 again, which reduces our refund amount.

The error message is as follows:

1040/1040SR Wks:  Charitable contributions:  Charitable contributions has an unacceptable value.

[DoninGA]

For the TurboTax desktop editions -

To remove the error I went into Forms mode and deleted the Charitable Organization Worksheet.  Then on the Form 1040 Worksheet for Line 12b removed the $300 amount so Line 12b is now blank (empty).

Going back to Step-by-Step I completed the Deductions & Credits section without entering anything for a charitable donation.  Continuing through the screens until landing on the screen labeled Charitable Cash Contributions under Cares Act, I entered $600.  Continued through Final Review without error.

For the TurboTax online editions -

The problem appears to be that a charitable donation was entered in the Deductions and Credits section of the program when you are only eligible for the Standard Deduction.

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

Scroll through the all the forms, schedules and worksheets listed and delete all the Charitable Organization forms listed.

When completed with removing forms click on Continue With My Return at the bottom of the list.

Click on Federal on the left side of the screen

Click on Deductions & Credits at the top of the screen

Scroll down to the bottom of the page and click on Wrap up tax breaks

Continue through the screens.  After the screen showing that you are getting the Standard Deduction the following screen is Charitable Cash Contributions under Cares Act.  Enter $600 if filing Jointly or $300 for all other filing status'.  The federal review and the Final Review should no longer show an error for the charitable donation.

[AnnetteB6 · Accepted solution]

You are correct that a Married Filing Joint return is allowed a $600 charitable contribution while using the Standard Deductions for tax year 2021.  The previous limit was $300.  However, making that change in the TurboTax program has not been smooth.  

There is a workaround provided by Expert JotikaT2 that will allow you to continue with your return without encountering the error. 

Use the following steps to revisit the Charitable Contributions section of your return:

1. Click on the Federal Taxes tab.
2. Select the Deductions & Credits tab.
3. On the screen titled How do you want to enter your deductions and credits?, select I'll choose what I work on.
4. Scroll down to Charitable Donations.
5. Select Update to the right of Donations to Charity in 2021.
6. You will see a screen titled Review All Your Charities.
7. To the right of any deductions entered, select Delete to remove any input.
8. You will then select Done with Charitable Donations.
9. On the next page (Deductions), scroll down to the bottom and click on Done with Deductions.
10. Proceed through the following screens until you pass the screen letting you know you are getting the Standard Deduction.  
11. The next screen titled Charitable Cash Contributions under the Care Act will allow you to enter your charitable contributions for 2021.  Enter your total cash contributions on this screen and select Continue.

[joannekemp]

THANK YOU FOR YOUR HELP!

[joannekemp]

THANK YOU SO MUCH FOR YOUR HELP!  

[NOAH71]

Thank you!

[Frustrated33]

I too had the incorrect amount of $300 added to line12b (should be $600).  But I cannot delete my itemized deductions as I need them for my State return even though I use the Standard Deduction on my Federal.  Is there some way I can directly edit this line?  Thanks

[KrisD15]

Please return to the Deductions & Credits section, scroll down to "Charitable Donations" and DELETE any cash entries you made there. 

To include charitable donations for your state return, you can enter the donations as "Items" select "I'll value them, select "Other intangible property" enter the description as cash if it was and the amount as the value. 

Go back through the review. The program will ask you for that number again although it may not be until the END of the FINAL REVIEW.  (After the "Tax Summary for 2021" screen)

 Enter the amount up to 600 Married Filing Joint.

[dknowlto]

That was a life saver.. thank you!!

[AbilitySys]

That worked, but you must also do the same thing for any mileage deductions. If you don't, TT uses the calculated mileage deductions as you cash donations and then uses that number for line12b without asking (and allowing you to enter 300 or 600). I had about 30 separate cash donations to convert to "items" but at least I was able to finish filing. What a PITA.

[mjljjl]

By deleting all of my charitable donations it removes them from my state return, which increases my tax due to the state.  How do we work around this?

[AbilitySys]

See the post by KrisD15, above. If you (hopefully) saved a copy of the return with the deductions still there, you need to convert the ones with cash donations into an "item" with a description of "cash" and a value of the amount of cash you donated. I added the item, then deleted the money entry for each of the charities I donated to since I couldn't see how to simply change the existing entry.

If you already deleted the deductions, re-enter them but use the "items" donaton and "cash" description when you enter any money donations.

You must also do the same thing for any mileage donations, or TurboTax will consider them as cash and when it chooses the Standard Deduction it will have a value and not ask you about line 12b. For each mileage entry, I noted the calculated amount, then added an "item" with the description of "mileage <# of miles>" and used the previously calculated value as the "value" entry.

By doing this, I was able to get TurboTax to finish and kept my state donations intact.

God luck!

- Robert

[mjljjl]

Got hold of rep at Turbo Tax. They still do not acknowledge there is a problem, but she walked me through manually changing the amount on the form itself.  I have the CD version purchased from Amazon which is slightly different from the on-line version.  This way my state form is correct.  Will really have to debate using TurboTax next year as I am now wondering what else is wrong in their software.

[ken3232444]

What a pain. Intuit, if you are reading this, can you please post when a fix will be available.

[KrisD15]

Please return to the Deductions & Credits section, scroll down to "Charitable Donations" and DELETE any cash entries you made there. 

( To include charitable donations for your state return, you can enter the donations as "Items" select "I'll value them, select "Other intangible property" enter the description as cash if it was and the amount as the value. )

Go back through the review. The program will ask you for your charity donation again although it may not be until the END of the FINAL REVIEW.  (After the "Tax Summary for 2021" screen)

 Enter the amount up to 600 Married Filing Joint.

The Tax law allows a Taxpayer to claim Charity Donations on their Schedule A or, if using the Standard Deduction, on their 1040 line 12b as an addition to their Standard Deduction amount. 

This amount can be up to 600 for Married Filing Joint, or 300 for all others.