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

I am also using a CD (from Costco) and it does not seem to have the "Charitable Cash Contributions under Cares Act." screen mentioned in the work around.  

KrisD15
Employee Tax Expert

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

Please go through the entire review and past the state return. 

 

It is the final screen before filing. 

 

It shows up AFTER the "Tax Summary for 2021" screen. 

Then "Check this Entry" 

 

Did you go past those screens? 

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

Did you donate anything besides "items?" I removed all "money" entries and replaced them with "items" as described in this post, finished the return and never saw the "Contributions under Cares Act" screen either, but noticed the return only game me a small number ob 12b. Then I realized that number was the total of my "mileage" donations, so I went back and replaced those with "items" entries and then it finally showed me the CARES act screen.

 

Maybe you have something else in your charitable donation section that needs to be replaced? Go through to the "print a review copy" and see what number it actually used in 12b for a hint as to what to look for.

 

Good luck, and maybe they will fix it before April 15? :(

 

- Robert

JamesG1
Employee Tax Expert

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

Agree that the best strategy is to remove all charitable contributions reported under Donations to Charity in 2021 in the online versions.

 

Federal 1040 line 12b Charitable Cash Contributions under CARES Act can be entered or removed at either: 

  • Federal Taxes / Deductions & Credits / Your tax breaks / Donations to Charity in 2021 or
  • at the screen Charitable Cash Contributions under CARES Act immediately following Based on what you just told us, the Standard Deduction is best for you.

 But the second entry appears to produce better results.  

  • Remove the entries at Donations to Charity in 2021 by deleting the entries.
  • Scroll to the bottom of the page and click on Wrap up tax breaks.
  • You will see the screen Based on what you just told us, the Standard Deduction is best for you.
  • At the screen titled Charitable Cash Contributions under the CARES Act, make sure that the box contains the amount of the deduction for which you qualify.
  • At Other Tax Situations, scroll to the bottom of the page and click on Let’s keep going.
  • Continue through Review.

Go to Tax Tools / Tools / View Tax Summary / Preview my 1040 to view line 12b for the charitable deduction.

 

 

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ajs
Level 3

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

Yes, exactly, this hack of a workaround doesn't cut it for states like Colorado that need to know (import from the federal return) your total contributions, in order to give standard deductors a state deduction for the total less $500. I expect Intuit to FIX THIS ASAP, like tomorrow when I boot up and update the program again! Unacceptable.

MJPH
New Member

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

This worked.  Thank you so much

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

There are relationships between the Fed 1040 12b and the various state tax returns and the work-arounds do not work for all states and or scenarios.

 

Moderators need to

1) Acknowledge this and stop offering buyer be aware work-arounds.

2) Give an estimated time for when TT is going to fix this.

 

Turbo Tax needs to take this bug seriously - its been known for too long now to not be resolved.

jocall
New Member

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

The work arounds are partial solutions, however, it is unethical to misrepresent a deduction as an "item" when in fact, it is cash. The solution of how to get the $600 additional charitable deduction on the FED, does not provide correct and truthful entries on the California tax return. Turbo Tax, please provide an ethical correction for this problem. 

It also appears that there are differences in the on-line download of Turbo Tax versus the CD that I purchased from you. I have not been able to find adjustments for the Care Act. . .

Please provide a valid fix that will not distort our deductions for the Fed or State returns. We need this ASAP.

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

You should wait for TT to fix if you are concerned about cash being misrepresented as items. Otherwise, you'll need to resort to the Jedi mind trick when the IRS invites you to their offices...

 

"These are not the cash deductions you are looking for" 

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

@TheRealTax2 

 

I agree. The problem is TT is not acknowledging there is anything to fix.

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

First, I want to preface this by stating that I have been using TurboTax for 15 years.  I am also experiencing this problem with desktop version of 2021 TurboTax Premier.  I have a CaseID with TurboxTax for about 1 week.   There is another large thread on this topic with over 5 pages of feedback.  Here are my concerns:

1. TurboTax has done several screen share sessions with me and have taken several screenshots and tried various scenarios without success over 3 days.   A TurboTax Tax Expert (and CPA) confirmed the error and no workaround.  Interestingly enough, he said that he could reproduce the problem on the desktop but not the online version.

2. TurboTax has recommended "workarounds" that they call "Fixes" that they have not first tried, because they do not work when a TurboTax representative and I tried them on a screen sharing session.  This was confirmed over 3 days with a TurboTax representative.

3. A fix is a change control to software that has a defect.  As of the software update the other day (10Feb2022), the software defect stills exists.    Don't tell people they cannot itemize charitable deductions.  It is a requirement for a number of state filings and for all a helpful record-keeping practice.   Also, why then even have a screen in which a person can itemize charitable deductions.   This is simple programming logic that needs to be corrected.

4. TurboxTax closed my CaseID after 3 days even though they have provided no solution to the problem.  I called them to insist on reopening the CaseID.

5. TurboTax will not respond to my question: "Is there is a plan to implement a change control to fix this defect in the software".  Turbotax's insistence on calling workaround "fixes" and a lack of response to everyone is a very LOUD statement about a lack of commitment to Quality and Customer Service.

ajs
Level 3

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

Interesting thread. Here's a meta-comment from a 14-year user of TT, also a retired software engineer. TT/Intuit used to be just awesome when I started interacting with them. They were responsive, responsible, and caring. Even did a lot of end-user testing, including "walk homes" (or whatever they called them) with people buying the CDs.

 

Now it appears the "bean counters" and marketeers have taken over, milking the product line as a "cash cow". This is sad, but predictable in hindsight, I've seen it in other companies too. Much of it arises from outsourcing more and more components to third parties, and then not keeping close tabs on the results.

 

In particular, instead of offering friendly ways to interact with company experts and get solutions, it seems they are incapable of even admitting there is a problem (hey, software bugs happen, that's life) and openly working toward timely fixes.

 

A few years ago I ran into a stupid problem with  Form 8962 handling, where TT rounded before adding, when clearly they were supposed to add before rounding. This literally caused us to get audited one year, because the bottom line numbers for the whole year were off by a few dollars, technically the IRS wasn't even supposed to care about that, but their robot did. I figured out how to override and work around the problem, and ~3 years later the software was finally, silently, fixed.  Just in time for us to leave the ACA and enter Medicare.

 

I tried several times to alert Intuit to this problem, and all I got back was, "we are following IRS guidance" (demonstrably wrong).

ajs
Level 3

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

"You should wait for a fix..."  Wait, how long? When Intuit doesn't even acknowledge there's a problem?  When in my past experience (see other missive I just posted), it might take years, if ever?

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

I too am a 15 year user of TT and have only had major issues with the last two years where fixes take forever. This defeats the purpose of filing early. If the business practices and outsourcing has changed the company to a product that is now unacceptable then what are our choices for next year? Are there competitors that will import the TT saved files so that we won't need to retype all our info? 

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

not sure if there is a trail version or not but you can look at https://www.taxact.com/tax-preparation

 

@TheRealTax2 

 

I'm  very close to getting a refund for my Turbo Tax and just taking it to a CPA. Between the cost of the software and cost of efile for state return and dealing with incompetent support, TT  just isn't worth it.

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