Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 22, 2021 9:27:11 AM

Why does TT reduce my cash donations by $300 on my state return (OR)? Standard deduction on Federal, itemized for state.

The $300 comes from the Line 10b amount for Fed filers taking the std deduction(with cash donations).  Oregon instruction states not to include it, but TT has also reduced my actual cash donations by the $300.

0 2 420
1 Best answer
Expert Alumni
Mar 22, 2021 2:02:13 PM

No, this is correct.

 

The reason is that that $300 cash contribution reduces your federal adjusted gross income. Line 7 on Oregon OR-40 is your federal adjusted gross income, which you now know already has the $300 removed.

 

So it would be double-dipping to also remove this as a charitable contribution.

 

This is why the Oregon instructions say:

"Note: If you're itemizing deductions for Oregon, you must omit this deduction from the charitable contribution you claim on Schedule OR-A. See the instructions for Schedule OR-A." See New Information at the OR-40 Instructions.

2 Replies
Expert Alumni
Mar 22, 2021 2:02:13 PM

No, this is correct.

 

The reason is that that $300 cash contribution reduces your federal adjusted gross income. Line 7 on Oregon OR-40 is your federal adjusted gross income, which you now know already has the $300 removed.

 

So it would be double-dipping to also remove this as a charitable contribution.

 

This is why the Oregon instructions say:

"Note: If you're itemizing deductions for Oregon, you must omit this deduction from the charitable contribution you claim on Schedule OR-A. See the instructions for Schedule OR-A." See New Information at the OR-40 Instructions.

Level 1
Mar 22, 2021 6:00:55 PM

Thanks for the clarification.   The wording on the OR-A instructions is a bit different from the OR-1040:

If you’re claiming this federal deduction and itemizing deductions for Oregon only, don’t include the federal deduction in the charitable contributions you are claiming on Schedule OR -A

I interpreted the form instructions to mean don't add the $300 in addition to the itemized items from the Fed return, but concur with your provided answer.