The CARES act allows up to $600 in charitable donation deductions (married), even if not itemizing. Why is our running refund balance not changing after we enter these?

[user3060682]

We gave $680 in 2021. I did a test where I decreased the total below the $600 max allowed by the CARES act, to see if the running refund amount would lower, but it didn't. Could this be a bug with TurboTax? Anyone else claiming the standard deduction and having success with up to $600 of charitable donations increasing their refund amount?

[DanaB27]

Yes, as filing married filing jointly you can claim $600 as an adjustment to income (line 10b) if you made cash contributions to a charitable organization while claiming the Standard Deduction. 

It will depend on your taxable income and tax rate how much the charitable contribution will affect your refund. For example, if the Standard Deduction alone reduces your taxable income to $0 then the charitable contribution will not affect your refund. 

Please follow these steps to enter the charitable cash contribution for 10b :

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Click “Deductions &Credits” on the top
4. Scroll all the way down and click the "Wrap up tax breaks" button
5. Continue until the "Charitable Cash Contributions under Cares Act" screen
6. Enter your charitable cash contributions.

To verify your entry on 10b:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

[user3060682]

Thanks I will try this! Still waiting on a form in order to be able to complete entering my income, so I might wait to go to the "wrap up tax breaks" page in the "Federal" section until I have all of that entered. But the steps you gave sound straightforward.

[werodda1]

Dana, I have no "Wrap up tax breaks" at the bottom of my Deductions and Credits TT page??   I am taking the standard deduction and am entitled to the $600 "Cares" cash charitable contribution credit as married filing jointly. I actually contributed over $3,000 in tax year 2021.  ON the first TT review an error message comes up that says: "the cash charitable contribution has an unacceptable value"???   AND it plugs in $300???   When I overwrite it with the correct $600 amount and when I am at the the "FINAL REVIEW"  IT SPITS BACK THE ERROR MESSAGE???   I even went directly into "FORMS" and plugged in the corect $600 value.  I have spoken to two online TT employees and they both walked me through 45 minutes of attempts, and NONE WERE SUCCESSFUL.  THIS LOOKS LIKE A SOFTWARE PROBLEM THAT NEEDS A FIX.  Help?  Bill

[DoninGA]

@werodda1 

To remove the error I went into Forms mode and deleted the Charitable Organization Worksheet.  Then on the Form 1040 Worksheet for Line 12b removed the $300 amount so Line 12b is now blank (empty).

Going back to Step-by-Step I completed the Deductions & Credits section without entering anything for a charitable donation and click on Done with Deductions.  Continuing through the screens until landing on the screen labeled Charitable Cash Contributions under Cares Act, I entered $600.  Continued through Final Review without error.

[werodda1]

Thanks  Donin.  That is way to get there but your tax record-return now does not accurately reflect your TRUE actual cash contributions. It's a work-around which by definition means 'there is a problem" and this is an end around fix.  Don't get me wrong thanks for the advice.  My point is we shouldn't have to do this!!! 

Don't you agree?  Why doesn't TT just recognize the software problem & do a fix????

[DoninGA]

@werodda1 Since you are not itemizing your deductions the full amount of your cash donation is moot since nothing is filed with the IRS that will include the full amount of the donation that was made.  Only the $600 of the total donation is being reported since you are using the Standard Deduction.

[werodda1]

thanks, I do get that.  MY point is there is a software problem...... Agree???

AND WHY SHOULD THE USERS HAVE TO GO THROUGH THIS DRILL?

Why doesn't TT just recognize the software problem & do a fix????

Reply

[DoninGA]

I agree, this issue should not be happening and the user of the software should not have to make these types of corrections.  The programmer's should already know about this issue since it has been a complaint since the software was released.  However, there is no information on when or if this issue is going to be corrected.

[werodda1]

Thanks for your sanity here Donin!  Don't feel alone anymore!!

[GlenninCT]

I was having the same problem not being able to fix the $300 default entry. This workaround worked for me and I was able to complete my return.  Thanks for sharing - this was driving me nuts.  It would be helpful if TT changed the software or put in a note to help users.  Long time TT user, but sometimes it can be frustrating.

[half2full]

When will this bug be fixed.  This is unacceptable.

[skurtzweil]

I am using Turbo Tax Deluxe and am unable to get the 600 per couple tax credit for donations under the 2021 Cares Act.

I have tried the number of work arounds posted on your site and none of them work.  Is this a bug you will/should fix?

Steve

[skurtzweil]

Update:  It appears to give me a slight credit on my state taxes but not on my Federal Tax per the tax law?  Is TT going to fix this?

[HelenC12]

To reap tax benefits for making charitable donations, you must generally itemize your deductions rather than taking the standard deduction.

For 2021, if you’re claiming the standard deduction, this amount is up to $600 per tax return for those filing married filing jointly and $300 for other filing statuses.

You can correct your return(s) by logging back into your TurboTax program and following the steps below.

1. Click on the Federal Taxes tab.
2. Select the Deductions & Credits tab.
3. On the screen titled How do you want to enter your deductions and credits?, select I'll choose what I work on.
4. Scroll down to Charitable Donations.
5. Select Update to the right of Donations to Charity in 2021.
6. You will see a screen titled Review All Your Charities.
7. To the right of any deductions entered, select Delete to remove any input.
8. You will then select Done with Charitable Donations.
9. On the next page (Deductions), scroll down to the bottom and click on Done with Deductions.
10. Proceed through the following screens until you pass the screen letting you know you are getting the Standard Deduction.  
11. The next screen titled Charitable Cash Contributions under the Care Act will allow you to enter your charitable contributions for 2021.  Enter your total cash contributions on this screen and select Continue.

Source: JotikaT2 Employee Tax Expert