TurboTax reduces amount of cash charitable contributions (1040 Line 12b)

For the TurboTax desktop editions -

 

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.

You are correct that a Married Filing Joint return is allowed a $600 charitable contribution while using the Standard Deductions for tax year 2021.  The previous limit was $300.  However, making that change in the TurboTax program has not been smooth.  

 

There is a workaround provided by Expert JotikaT2 that will allow you to continue with your return without encountering the error. 

 

Use the following steps to revisit the Charitable Contributions section of your return:

 

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.

THANK YOU FOR YOUR HELP!

THANK YOU SO MUCH FOR YOUR HELP!  

Thank you!

I too had the incorrect amount of $300 added to line12b (should be $600).  But I cannot delete my itemized deductions as I need them for my State return even though I use the Standard Deduction on my Federal.  Is there some way I can directly edit this line?  Thanks

Please return to the Deductions & Credits section, scroll down to "Charitable Donations" and DELETE any cash entries you made there. 

 

To include charitable donations for your state return, you can enter the donations as "Items" select "I'll value them, select "Other intangible property" enter the description as cash if it was and the amount as the value. 

 

Go back through the review. The program will ask you for that number again although it may not be until the END of the FINAL REVIEW.  (After the "Tax Summary for 2021" screen)

 

 Enter the amount up to 600 Married Filing Joint.

That was a life saver.. thank you!!

That worked, but you must also do the same thing for any mileage deductions. If you don't, TT uses the calculated mileage deductions as you cash donations and then uses that number for line12b without asking (and allowing you to enter 300 or 600). I had about 30 separate cash donations to convert to "items" but at least I was able to finish filing. What a PITA.

By deleting all of my charitable donations it removes them from my state return, which increases my tax due to the state.  How do we work around this?

See the post by KrisD15, above. If you (hopefully) saved a copy of the return with the deductions still there, you need to convert the ones with cash donations into an "item" with a description of "cash" and a value of the amount of cash you donated. I added the item, then deleted the money entry for each of the charities I donated to since I couldn't see how to simply change the existing entry.

If you already deleted the deductions, re-enter them but use the "items" donaton and "cash" description when you enter any money donations.

You must also do the same thing for any mileage donations, or TurboTax will consider them as cash and when it chooses the Standard Deduction it will have a value and not ask you about line 12b. For each mileage entry, I noted the calculated amount, then added an "item" with the description of "mileage <# of miles>" and used the previously calculated value as the "value" entry.

By doing this, I was able to get TurboTax to finish and kept my state donations intact.

God luck!

- Robert

Got hold of rep at Turbo Tax. They still do not acknowledge there is a problem, but she walked me through manually changing the amount on the form itself.  I have the CD version purchased from Amazon which is slightly different from the on-line version.  This way my state form is correct.  Will really have to debate using TurboTax next year as I am now wondering what else is wrong in their software.

What a pain. Intuit, if you are reading this, can you please post when a fix will be available.

 

Please return to the Deductions & Credits section, scroll down to "Charitable Donations" and DELETE any cash entries you made there. 

 

( To include charitable donations for your state return, you can enter the donations as "Items" select "I'll value them, select "Other intangible property" enter the description as cash if it was and the amount as the value. )

 

Go back through the review. The program will ask you for your charity donation again although it may not be until the END of the FINAL REVIEW.  (After the "Tax Summary for 2021" screen)

 

 Enter the amount up to 600 Married Filing Joint.

 

The Tax law allows a Taxpayer to claim Charity Donations on their Schedule A or, if using the Standard Deduction, on their 1040 line 12b as an addition to their Standard Deduction amount. 

 

This amount can be up to 600 for Married Filing Joint, or 300 for all others.

I am also using a CD (from Costco) and it does not seem to have the "Charitable Cash Contributions under Cares Act." screen mentioned in the work around.  

Please go through the entire review and past the state return. 

 

It is the final screen before filing. 

 

It shows up AFTER the "Tax Summary for 2021" screen. 

Then "Check this Entry" 

 

Did you go past those screens? 

Did you donate anything besides "items?" I removed all "money" entries and replaced them with "items" as described in this post, finished the return and never saw the "Contributions under Cares Act" screen either, but noticed the return only game me a small number ob 12b. Then I realized that number was the total of my "mileage" donations, so I went back and replaced those with "items" entries and then it finally showed me the CARES act screen.

 

Maybe you have something else in your charitable donation section that needs to be replaced? Go through to the "print a review copy" and see what number it actually used in 12b for a hint as to what to look for.

 

Good luck, and maybe they will fix it before April 15? :(

 

- Robert

Agree that the best strategy is to remove all charitable contributions reported under Donations to Charity in 2021 in the online versions.

 

Federal 1040 line 12b Charitable Cash Contributions under CARES Act can be entered or removed at either: 

• Federal Taxes / Deductions & Credits / Your tax breaks / Donations to Charity in 2021 or
• at the screen Charitable Cash Contributions under CARES Act immediately following Based on what you just told us, the Standard Deduction is best for you.

 But the second entry appears to produce better results.  

• Remove the entries at Donations to Charity in 2021 by deleting the entries.
• Scroll to the bottom of the page and click on Wrap up tax breaks.
• You will see the screen Based on what you just told us, the Standard Deduction is best for you.
• At the screen titled Charitable Cash Contributions under the CARES Act, make sure that the box contains the amount of the deduction for which you qualify.
• At Other Tax Situations, scroll to the bottom of the page and click on Let’s keep going.
• Continue through Review.

Go to Tax Tools / Tools / View Tax Summary / Preview my 1040 to view line 12b for the charitable deduction.

 

 

Yes, exactly, this hack of a workaround doesn't cut it for states like Colorado that need to know (import from the federal return) your total contributions, in order to give standard deductors a state deduction for the total less $500. I expect Intuit to FIX THIS ASAP, like tomorrow when I boot up and update the program again! Unacceptable.

This worked.  Thank you so much

There are relationships between the Fed 1040 12b and the various state tax returns and the work-arounds do not work for all states and or scenarios.

 

Moderators need to

1) Acknowledge this and stop offering buyer be aware work-arounds.

2) Give an estimated time for when TT is going to fix this.

 

Turbo Tax needs to take this bug seriously - its been known for too long now to not be resolved.

The work arounds are partial solutions, however, it is unethical to misrepresent a deduction as an "item" when in fact, it is cash. The solution of how to get the $600 additional charitable deduction on the FED, does not provide correct and truthful entries on the California tax return. Turbo Tax, please provide an ethical correction for this problem. 

It also appears that there are differences in the on-line download of Turbo Tax versus the CD that I purchased from you. I have not been able to find adjustments for the Care Act. . .

Please provide a valid fix that will not distort our deductions for the Fed or State returns. We need this ASAP.

You should wait for TT to fix if you are concerned about cash being misrepresented as items. Otherwise, you'll need to resort to the Jedi mind trick when the IRS invites you to their offices...

 

"These are not the cash deductions you are looking for" 

@TheRealTax2 

 

I agree. The problem is TT is not acknowledging there is anything to fix.