Why does Turbotax count only 1% of my charitable deductions

[DoninGA]

Where are you seeing this?

On a 2022 tax return charitable contributions are entered as itemized deduction on Schedule A Lines 11 and 12 with any carryover from a prior tax year on Line 13.

The total of all your itemized deductions on Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

Standard deductions for 2022

• Single - $12,950 add $1,750 if age 65 or older
• Married Filing Separately - $12,950 add $1,400 if age 65 or older
• Married Filing Jointly - $25,900 add $1,400 for each spouse age 65 or older
• Head of Household - $19,400 add $1,750 if age 65 or older

[rjs]

The tag below your question indicates that you are using TurboTax Online. If that's true, you can't see Schedule A unless you pay the TurboTax fees and print your tax return. Are you making an assumption about what TurboTax is doing based on changes in your refund or tax due? That may not be an accurate reflection of your deduction for charitable contributions. To see how TurboTax is handling your contributions you have to look at the actual amounts on Schedule A. Something else could be limiting the effect of the deduction.

[PDNIGHT]

Thanks for your quick response, but i have been hindered by family medical issues to respond.  You asked how i could tell what amount TT is using for itemized deductions.

Using TT Deluxe 2022 on line, once i put in the deductions (tax break page) it shows the total of deductions and shows that the Standard Deduction is more than my itemized deductions.  Underneath that graphic is a link that says:  Show me the estimated breakdown.  

When i click on this it shows the amount for each of the four categories including only $410 for charity even though my contributions to IRS-approved organizations were $8,725, .  Since my entered income is $62,659 I why am i not getting a minimum of $31,329 charitable deductions? My other itemized deductions are $27,000 so the $8,725 charitable contributions should put me over the standardized deduction.

Thanks for your thoughts.

[rjs]

It's very hard to analyze a problem like this in TurboTax Online. That's why many of us prefer to use the CD/Download TurboTax software.

You have to look at Schedule A lines 11 through 14 to see what's going on with the charitable contributions. If line 11 is less than $8,725 you would probably have to go back to the individual Charitable Organization Worksheets or other worksheets to see what happened. When problems like this come up, you cannot rely on the summary screens in the TurboTax interview. You have to look at the actual forms.

You didn't say what your Adjusted Gross Income (AGI) is. "Entered income" is not AGI. Your AGI could be significantly less than the total income that you entered. AGI is on Form 1040 line 11, which you can see in TurboTax Online without paying the TurboTax fees. The limit on contributions is a percentage of AGI, not a percentage of "entered income." And certain types of contributions are subject to lower percentage limits.

You also didn't say what your other itemized deductions are. It's possible that some other deduction is being limited, so that the total is not as much as you think. Again, you have to look at Schedule A and not rely on the interview screens.