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According to IRS, donations of up to $300 by 12/31/2020 are now deductible without itemizing for 2021 filing. However, adding $300 doesn't increase my refund on TurboTax.

Please follow the link to IRS news. It seems that TurboTax has not reflected the tax law change for 2021 filing?
https://www.irs.gov/newsroom/most-taxpayers-can-deduct-up-to-300-in-charitable-contributions-without...
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1 Best answer

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DanaB27
Expert Alumni

According to IRS, donations of up to $300 by 12/31/2020 are now deductible without itemizing for 2021 filing. However, adding $300 doesn't increase my refund on TurboTax.

 

Please try the following solution to enter the charitable contribution for 10b :

  1. Login to your TurboTax Account 
  2. Click "Federal" from the left side of your screen
  3. Click “Deductions &Credits” on the top
  4. Scroll all the way down and click the "Wrap up tax breaks" button
  5. Continue until the "Charitable Cash Contributions under Cares Act" screen, it should be after TurboTax informs you about the Standard Deduction.
  6. Enter your $300 charitable contributions.
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4 Replies
BillM223
Expert Alumni

According to IRS, donations of up to $300 by 12/31/2020 are now deductible without itemizing for 2021 filing. However, adding $300 doesn't increase my refund on TurboTax.

Note: there are two steps below...please read carefully.

 

For 2020, Congress has changed tax law to permit the deduction of certain charitable contributions “above the line”, even if the taxpayer is taking the Standard Deduction otherwise. The new deduction will appear on line 10b on the 1040.

 

There are restrictions: the contribution must be in cash or cash-equivalent and it cannot exceed $300 for most filing statuses (exception: $150 for Married Filing Separate).

 

To enter this deduction, you must enter the charitable contributions as if you were going to itemize these contributions (do a Search (upper right) for charitable contributions and click on the jump-to result). Be sure to indicate that the contribution was “Money” or else TurboTax will not ask about it later.

 

Note that you do not need to enter any other charitable contributions if you are not planning to itemize.

 

Then, in the Federal Review at the end of your data entry, TurboTax will realize that you are taking the Standard Deduction and ask you to enter the amount of the charitable contribution that was in cash. Note the limits described above ($300 or $150); in the desktop product, at least, if you enter an amount larger than this, you will be asked to reduce it to the limit when you enter the amount.

 

When you enter the cash-based charitable contribution this way, the result will appear on line 10b on the 1040 as an above-the-line deduction.

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According to IRS, donations of up to $300 by 12/31/2020 are now deductible without itemizing for 2021 filing. However, adding $300 doesn't increase my refund on TurboTax.

The reason I am asking is that TurboTax is not realizing the $300 money input. I added $300 and deleted, again and again, but the refund is not changing. I do standard deduction of course. I don't have any donation other than the $300 *money*  in the donation section. 

DanaB27
Expert Alumni

According to IRS, donations of up to $300 by 12/31/2020 are now deductible without itemizing for 2021 filing. However, adding $300 doesn't increase my refund on TurboTax.

 

Please try the following solution to enter the charitable contribution for 10b :

  1. Login to your TurboTax Account 
  2. Click "Federal" from the left side of your screen
  3. Click “Deductions &Credits” on the top
  4. Scroll all the way down and click the "Wrap up tax breaks" button
  5. Continue until the "Charitable Cash Contributions under Cares Act" screen, it should be after TurboTax informs you about the Standard Deduction.
  6. Enter your $300 charitable contributions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

According to IRS, donations of up to $300 by 12/31/2020 are now deductible without itemizing for 2021 filing. However, adding $300 doesn't increase my refund on TurboTax.

Also be aware that the $300 is a deduction from INCOME, before the taxes are calculated. It is not added to your refund.  In addition, any decrease in income can also change some credits, such as EIC.

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