State charitable donations don't match federal in Turbo Tax

[deha]

Hi,

Problem:  In the Turbo Tax 2021 program, the amount of state charitable donations don't match the federal - it's lower by $600. 

Background:  I went into the 2021 Turbo Tax file (federal return was submitted on time).  The only change I made was accepting when the program asked me if I wanted to update the state with the latest tax info.   Probably stupid to agree. 

I've used Turbo Tax for years and never had a mismatch showing for charitable contributions.  For those who take the federal standard deduction, my state allows you to claim charitable contributions in excess of $500.  Screen shots are attached and highlighted;  

the federal area clearly shows $600 more in charitable donations than the state.   Please help, as I need to amend my returns and would like them to be correct.  Thanks in advance. 

How do I contact an Intuit support person? 

[deha]

This has also decrease the state refund.

[MonikaK1]

See here for the Colorado rules for its Charitable Contribution Subtraction. A taxpayer who both makes qualifying charitable contributions and claims the standard deduction on their federal income tax return for the same tax year can claim a Colorado charitable contribution subtraction for a portion of their contributions.  

In general, the charitable contribution subtraction is calculated by subtracting $500 from the total amount of qualifying contributions made by the taxpayer during the tax year. For example, if a taxpayer who is eligible to take the charitable contribution subtraction made several qualifying contributions totaling $1,200 during the tax year, the taxpayer could claim a charitable contribution subtraction of $700. However, there are a variety of other federal rules that may affect the calculation of the subtraction. 

The amount you saw on the Federal screen in Step by Step mode may not be the qualified amount. Since you are using a Desktop version of TurboTax, you can switch to Forms mode to view all of the Federal and State forms to determine how the amounts were calculated. Click on the Forms icon in the upper right area of your screen to switch to Forms mode.

You asked how to contact Intuit support. If you have a question or concern about your 2021 TurboTax product, please see this help article for instructions to contact customer support or call 1-800-4-INTUIT (1-800-446-8848).

[deha]

Thanks for your reply.  But this appears to be a problem in the system, not a result of Colorado deduction laws.  Also, this problem was not in my original 2021 return or my prior years' returns.   

1.  For this 2021 return:  Originally the CO refund was $1013.  Now the CO refund shows $986. 

2. In the federal forms view, I double-checked all donations - they all show "entire interest given" box checked, the 50% charity boxes are checked, and in adding up the individual amounts, I've confirmed the $3,130 amount.

•  The 1040 also shows $3130 in deductions. 

3.  The updated CO 2021 DR 0140AD accounts for the in-excess of $500 in contributions; line 9 shows total contribution of $2530 (not $3130) and then shows the Colorado amount as $2030.  In line 9, I believe I should be showing $3130 in the left column and then $2630 (the Colorado deduction amount) in the right column. 

• The problem appears to be in the amount pulling correctly from the Federal to the Colorado return.  The discrepancy amount is $600, not $500.  
• The Screenshot from the federal return shows $3,130 in 2021 contributions.  
  • But the state screen (shown in second screenshot)  clearly states "We see that you entered charitable contributions on your federal return of $2,530."  That is not true; the contributions entered on the federal return show $3,130.  This is a mismatch between the federal and state areas of the program, and the program does not state anything to do with 1. qualified deductions or 2.  the Colorado threshold.  
  • So:  Since the taxes were originally filed in 2021, has there been some change into how the numbers pull from federal to state?  All contributions were to 501c3 organizations, and the Colorado return only sees the federal contributions.   

Thank you.  

[SteamTrain · Accepted solution]

Yes...but if you used the Standard Deduction for Federal taxes....for 2021 taxes, there was an allowed up-to $600 deduction (line 12b of the 2021 form 1040) that reduced your Federal Taxable income by $600 of charity donations for a MFJ couple, even if it couldn't use all of your charity deductions.

Since the CO forms start with the Federal Taxable Income, the CO starting income has already been reduced by $600, so CO doesn't let you take that $600 again, and starts with the 2530 value instead.

(But yeah, not sure about eh rest of it)

______
That won't happen again for 2022, since that $300/600 Federal deduction has ben eliminated

[deha]

SteamTrain - thank you.  That's exactly what this is, as a result of accepting the 2021 state updates a couple of days ago. 

Last year's Colorado return shows the line 9 amounts of $3130 (just like the federal return) and $2630. The updates changed the CO line 9 amounts to $2530 and $2030.  

It's concerning that Turbo Tax wouldn't have the proper state updates as of the tax filing last year - I always accept the updates, and I filed last minute.  I don't want a deduction I'm not entitled to and this could have caused some issues with the state! 

Because of your help, I can now move forward - sincere regards and thanks again.