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gr606606
Returning Member

Turbo Tax limits my cash charitable contribution to $300 instead of $600 when filing a joint return. Why

Turbo Tax limits my cash charitable contribution to $300 instead of $600 when filing a joint return. Why

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4 Replies

Turbo Tax limits my cash charitable contribution to $300 instead of $600 when filing a joint return. Why

I am running TurboTax Premier for Windows Version 021.000.0415 and only see this error if I entered a Charitable Donation in the Deductions & Credits section and only eligible for the Standard Deduction.

 

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.  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.

 

For the TurboTax online editions -

 

The problem appears to be that a charitable donation was entered in the Deductions and Credits section of the program when you are only eligible for the Standard Deduction.

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Delete a form

Scroll through the all the forms, schedules and worksheets listed and delete all the Charitable Organization forms listed.

When completed with removing forms click on Continue With My Return at the bottom of the list.

 

Click on Federal on the left side of the screen

Click on Deductions & Credits at the top of the screen

Scroll down to the bottom of the page and click on Wrap up tax breaks

 

Continue through the screens.  After the screen showing that you are getting the Standard Deduction the following screen is Charitable Cash Contributions under Cares Act.  Enter $600 if filing Jointly or $300 for all other filing status'.  The federal review and the Final Review should no longer show an error for the charitable donation.

gr606606
Returning Member

Turbo Tax limits my cash charitable contribution to $300 instead of $600 when filing a joint return. Why

I looked at my 2020 tax return and I was limited to $300. The same situation, but I did not catch it. This is absolutely unacceptable from TurboTax. This should not be so hard to identify and fix. I can only imagine the thousands if not millions of users this may have happened to. Given the marginal tax rate for users, how much tax paid was overstated because of this issue?  Is TurboTax going to refund us? This is a simple programming fix for TurboTax... I wonder if HR Block gets this correct and makes it simple.

CDKM1
Returning Member

Turbo Tax limits my cash charitable contribution to $300 instead of $600 when filing a joint return. Why

reply to gr606606

 

$300 was correct limit for 2020. During 2020, the limit was $300 regardless of filing status.

 

But the law changed for 2021 and  Turbo Tax is calculating it incorrectly for the current year. They are still limiting the deduction to $300 for married filing jointly returns when it should be a limit of $600 ($300 each). It would be limited to $300 for single returns or married filing separately.

 

JohnB5677
Expert Alumni

Turbo Tax limits my cash charitable contribution to $300 instead of $600 when filing a joint return. Why

@CDKM1  The $600 charitable tax deduction will work correctly if you follow these steps.

 

You can not have any deduction for charity in the Itemized deduction area.

 

  1. Go to Deductions & Credits

  2. Scroll to the very bottom

  3. Select

    1. Wrap up Tax Breaks (Online)

    2. Done with Deductions (Desktop)

    3. Continue through the interview to 

  4. Charitable Cash Contributions under Cares Act

  5. Enter your donation.

 

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