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Form 1040 Lin 12b is only used to report a cash charitable donation if using the Standard Deduction. If used it increases your Standard Deduction thereby reducing your taxable income.
I understand that, but when I enter the amount of cash contributions, the program calculates my refund. However, during review it identifies as an error and in place of what I entered, it enters $300 thereby reducing my refund.
Oh by the way, it doesn't increase the AGI, it increases the standard deduction.
@wtilley1 wrote:
I understand that, but when I enter the amount of cash contributions, the program calculates my refund. However, during review it identifies as an error and in place of what I entered, it enters $300 thereby reducing my refund.
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.
I guess that would work in some instances,
...but
Some states (don't know which, I think NC was one) allow charitable contributions deductions at lower levels than the IRS neeeds for itemized deductions. So deleting the Charity section entries messes up what they would need for their state deductions, even if Fed is Std Ded.
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Hope TTX soon cleans this up one heck of a lot. Cash already entered in Charity Deductions section should automatically fill in that up-to $600 even if the Std Ded ends up being used.
I have the same problem. I live in KS which now allows itemized deductions even when the standard deduction is taken on the federal form. I have entered my charitable donations and all other deductible amounts in the federal form. The total is less than the standard deduction for MFJ. If I understand correctly, line 12b should be $600, but Line 12b remains blank. I can override the amount, of course, but I would expect TT to enter the correct amount for me. Running TT 2021 download version on Windows 10.
There are hundreds of posts describing the same problem. There is a workaround for folks who must file Std Ded in state if Fed is Std Ded....but not for the few states where they can use state "itemized" even when Fed is Std Ded.
TTX is surely(?) working on it with all the problems.....BUT, they usually issue software updates only on Wed Evenings, so you'd probably have to wait until Thursday to run a software update to see if they fixed it.
(OR check for a software update once a day just in case....they do occasionally issue non-scheduled updates)
I think TT has fixed this error as of the 2/9/2022 update. It's working on my version now (Premier).
Glad to see that it is working. If you have any questions, please don't hesitate to post here.
I still have the issue with Turbotax Deluxe and mine is updated through 14 Feb. My thought is this for those who have state issues. Why can't you just go into Forms and change the appropriate entry?
Have you tried the steps that DoninGA provided above? @its_wayne.
Actually, I just went into forms view and made the correction to Line 1b. Also, I noticed that even though Line 12c is filled in in the forms view it is not filled in on the printed form.
This is a known experience and is just a display error; rest assured that the inputted value has been recorded and submitted appropriately. The following FAQ below provides further details:
Why isn't line 12c showing up on my printed return
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