Update on 3/30 TT 2023. Now donations of stock limited to 50% AGI, instead of 30%. Appear on line 6, not 5, of the Charitable Deduction Limits

[OhBother1]

This change appeared with the update 3/30.   I noticed deductions increased and traced it down to this.  Anyone else seeing this?

[OhBother1]

I was able to reproduce this problem with a very simple example, and so I uploaded a diagnostic file (token 1222654).  Tech support needs to look at this asap.

[MayaD]

I reviewed your tax file, information is reported correctly. 

• Under Type of charitable organization you selected 50% charity type. Stock donation is considered non-cash contribution.
• Qualified charitable contributions that you couldn't deduct because of the AGI limit should go on line 6 as carryovers to 2024. 

 

[Paul_U]

Yes! Was about to file today and just updated software.    Big change to my tax because of 2024 carryover was taken in 2023.

Any advice?

[OhBother1]

Yes, I do realize that a stock donation is not a cash donation.   

Charity type is not the same thing as type of property, they are two different factors the determine the limitation

 Pub. 526 reads "  The limit that applies to a contribution depends on the type of property you give and which category of qualified organization you give it to."

Prior to the March 27 update, Turbotax did the correct thing and put stock donations to 50% charities on line 5 of the worksheet, not line 6.   Why the change?  How come nobody at Turbotax noticed?   

Please escalate this to someone who understands that part of the tax code and talk to the person who made that change.

[OhBother1]

I used override on lines 5 and 6 to fix the problem.