Per IRS 2020 Instructions for Schedule A: https://www.irs.gov/instructions/i1040sca/
1. If you made a charitable contribution in exchange for a state or local tax credit your charitable contribution deduction must be reduced as a result of receiving or expecting to receive the tax credit.
2. There is a Safe Harbor rule that says that under certain conditions you may include this tax credit back on Sched A, line 5a, 5b or 5c, whichever is appropriate. https://www.irs.gov/irb/2019-27_IRB#NOT-2019-12
How do I get this entered in TurboTax?
1. The non-deductibility of the tax credit portion of the donation is not noted anywhere, I had to find out via other means.
2. I can't see how to force my tax credit amount back in so it shows up in Sched A line 5a. Seems like it should on the State Tax Ded Worksheet, line 17, but I can't edit that line directly even though it's blue. I also tried calling it an "Estimated Tax Payment", but that # isn't being brought forward.
Thanks for any help.
.You enter it in local taxes under estimated payments. You are still limited by the $10,000 SALT amounts. When I entered it in the Desktop version, I had to add an additional amount to get Schedule A to show. I got this notice:
You've maxed out the federal $10,000 deduction for itemized state and local taxes.
Any entries over the $10,000 limit won't impact your federal tax outcome, but may still benefit you on your state tax return. We'll include them automatically if this applies to you.
.You enter it in local taxes under estimated payments. You are still limited by the $10,000 SALT amounts. When I entered it in the Desktop version, I had to add an additional amount to get Schedule A to show. I got this notice:
You've maxed out the federal $10,000 deduction for itemized state and local taxes.
Any entries over the $10,000 limit won't impact your federal tax outcome, but may still benefit you on your state tax return. We'll include them automatically if this applies to you.