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I entered a $100,000 cash donation charity on my 1040 form for 2020 and selected the "100%/50% Charity" option.
The $100,000 donation showed up on Schedule A, line 11 labeled "qualified contribution elected" with an extra $15,925 added. What is going on?
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I've figured out where the $15,925 came from. It's the portion of my contribution that exceeds 60% of my AGI.
I had this "problem" as well and the IRS reduced the refund without telling us why.
we should have all tax withheld as our total refund as we contributed to fully 100% charitable organization, totally more than our annual AGI.
Did you get your full refund or any issues with IRS changing your return?
Did you get the tax refund situation sorted out?
I don't understand your comment about withholding taxes.
I didn't actually make a donation last year. I was planning to do so this year and was using 2020 tax software to explore the tax implications before the 2021 tax software was released.
No, trying to figure it out. The IRS changed income level but didn't state why just reduced refund, which should have been all of our withheld federal tax, but was about 2/3 of it. Also the program did not show carry over for the amoun of charitable deduction that wasn't used, since we had other items on schedule A. I need to get tech support, probably me, not the program but don't know who to correct it.
Is the amount by which the income level was changed consistent with the amount by which your tax refund was reduced? In other words, was the TurboTax software correct given the different input?
I'm asking because I'm placing a huge reliance on the TurboTax software being correct, otherwise I could be liable for huge taxes.
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