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

[dennistcook]

I'm getting the same error in TT Home&Business 2021. I'll try the scheme of removing all charitable deductions.

[fairfolk71]

There is another thread on this same subject with almost 4,100 views prior to it being locked by a Moderator https://ttlc.intuit.com/community/taxes/discussion/form-1040-line-12b-shows-unacceptable-value/00/24....  Other threads on this have been closed as "Problem Solved".  Most would disagree. I have never heard a workaround called a "Fix".   A workaround is a temporary solution to allow business continuity until a change control can be implemented to fix the issue.  If we are audited, do we tell the IRS or State that we were told to use this workaround from TT?

I have used TT Desktop version Premier or Deluxe, which I get from Costco, and prior to that from a mutual fund company. A friend uses HRBlock software. He is agreeable to showing me the software. Is it better or not, I don't know, but for the first time in 15 years I will be exploring what my options are next year.

[taxpayerincolorado]

I'm curious about that, too... is there another software program that will take the information from TT, so I don't need to retype everything? I entered all my information into TT on 2/6/22. It's 2/11/22; I did a software update, and it appears the problem isn't fixed. It's frustrating because I wanted to file my taxes early and be done with it, but, no, I'm still hanging on hope that this 1040, line 12b problem will be fixed. I, too, have been using TT for over 20+ years.

[ajs]

Don't know the answer to your transfer question. But have observed that the bug inserts itself when you do the review return, switching the $600 federal deduction to $300.  (Which as far as I can tell, WAS the MFJ limit in 2020, AND it was above not below the AGI.) By going into forms mode and making it $600 again, we got all the way to ready to e-file, pending one more review. The top-of-screen numbers still reflect $600 -- also the state (CO) return shows the excess donations deduction correctly. So now we're just hoping the software doesn't silently change that number back when we actually e-file.

So this workaround, if successful, should allow us to itemize our deductions, get the $600 federal + 500-excess state deductions, without having to abandon TurboTax (this year).

[brmwiatt]

With the last update, where I tried the work around of putting my charitable deductions under  Charitable Cash Contributions under Cares Act",  my Iowa state return then limits me to a zero # amount when itemizing charitable contributions in the Iowa return.  This suggest to to me their is relationship/logic between FED and State returns with respect to charitable contributions.

In other words Turbo Quacks is still  fubar'd and moderators and so call  employee  tax experts are of no help whatsoever.

When your software is buggy enough it prevents from filing, it can't help but send customers to the competition.

[Jeff_in_Michigan]

Today Feb 12, 2021 I found this chain of comments related to this problem.  I looked several days ago when I first found the problem and only saw comments regarding 2020 tax program.  I have talked to phone representative yesterday for two hours looking into this problem and they finally concluded that there might be an error and told me to check back in a month or two to see if it is fixed.  I received email from them saying issued closed and resolved.  Not true.  I have verified the work around that has you remove the details of cash contributions and then entering the amount direct into Cares section does provide correct refund.  However, I too worry that eliminating this detail might be a red flag to IRS.  Given that this chain of messages concerning this problem is weeks old I find it outrageous that TurboTax has not fixed the problem nor communicated it to their phone support staff.  I too will be looking into alternative tax software.  I keep spending so many more hours trying to sort out TurboTax problems that I am very frustrated.  When I first started using TurboTax many years ago it was much better.

[stzollner1]

I have the same problem. When will this be fixed? Correcting the amount from 300 to 600 will remove the error, but running the error check will reduce the amount again to 300, throwing me into an infinite loop.

[ajs]

As I might have written above, I'm setting it back to 600 after the error check, and then not repeating the error check!  We'll see what actually gets e-filed.

[taxpayerincolorado]

@ajs Can you please update this thread with the results of trying to e-file? 

I did my taxes last weekend, had the problem, and updated the software this morning to see it's still a problem. I am hesitant to do the work-around if it's going to cause a red flag with the IRS or State. Thanks!

[fairfolk71]

I also did the update today (12Feb2022) with Desktop Premier and sthe amount in 12b is still reduced from $600 to $300 after going to "Review" Screen and selecting "Analysis" prior to Audit Analysis.   TT never responded to my email asking if there is a plan to correct this software error.   Some of the other posts reported experiencing new problems to their workaround after updates.   So much for regression testing.   You would think there would be a test script to see the impact on their recommended "fixes".   Oh well.

I have another issue, TT is creating NJDOP (Disposition of Property) even though I have not sold any stocks, mutual funds, or properties. With a TT Advisor, we tried deleting the Form NJ, however it recreates the form after Review > Analysis.  There is supposed to be an update on February 17th.   I have a meeting scheduled with TT after that and will do a screen share session to look at both 12b $600 to $300 issue and false NJDOP.

I have not gone to "File" > "Final Steps".    My fear, is that we will receive eFile with errors and will not be able to correct the errors.   That is even worse than the loop we are already experiencing.

Good luck to everyone!!!

[ajs]

E-file complete!  After playing with this situation a lot, it appears that the bug manifests during the review, changing $600 to $300, and you can change it back afterwards in Forms mode.  In fact, for unknown reasons, after a while if I went through Review again and saw it change the number, it would say there was one error in the return, show me line 12b on the 1040 (if I recall right the location) as $300, I would type $600 in red, and after ENTER it would switch to blue, and stick around.

You can tell from the fed + state summary numbers at the top of the screen if it gets changed, or changed back.  I watched our total due to the IRS remain "correct" after this point, all the way through e-filing, and the print-to-PDF copy of the return looks right also.  Let's hope that's what was actually submitted.

If I have this right, I assert that my workaround is better than the one Intuit is repeating here! It left the contribution line items alone, and propagated for the state additional deduction.

[brmwiatt]

@ajs

What state is your return? I am in IA and when I tried that it does not allow me to itemize my charitable contributions in the IA schedule A.

@ajs 

@

[dennistcook]

State is PA; removing charitable deductions should have no effect on PA tax. But haven't tried that yet; waiting to see if TT comes up with a fix.

[ajs]

Sorry to be slow replying. State is CO; regardless of pandemic special deduction for federal, CO has long allowed donations in excess of $500 to be state deductible even if you don't itemize at the federal level.

However, my experience as a tax volunteer with TaxWise, and also user of TurboTax, is that you don't itemize separately for the state...  You enter the details once at the federal level, and it propagates to the state if/as needed. In our case, with the federal-level line 12b workaround to get $600 (pandemic special) federal deduction, then the balance above $500 also showed up on CO form 104CR (credits) just fine, without entering anything more at the state level.

[cfcan]

In my opinion, this is an unacceptable workaround.  Deleting the you contributions and then just entering the $600 for Ln 12b may fix the Federal return, but it deletes contributions that flow onto many state forms.  If you invoke this workaround, you'll likely pay may to your State than necessary because deductible contributions have been removed. 

Message to TurboTax software designers & coders.  - Fix the program so that it doesn't flag an error when contributions are $600 or greater and Married-Joint is selected.  This erroneous operation occurs in both the PC CD/download and the Online versions.  Please acknowledge the error and fix it.  

Thanks,

Clark C.