Can My deluxe program taxes the $300 charitable deduction with the std on federal. I itemize on Iowa it puts $300 adjust to income on return.will state reject my return ?

[bilodyer]

Total contributions for state $2415 will they net out itemized  to 2115 or reject?

[HelenC12]

No, your federal or state income tax return won't get rejected due to the special $300 charitable contributions deduction.

For 2020, there's a special provision on your federal income tax return. Even if you don’t itemize, you may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualified organizations.

•  Under this new change, individual taxpayers can claim an "above-the-line" deduction of up to $300 for cash donations made to charity during 2020.
• This means the deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations.

When your federal adjusted income transfers to your Iowa state income tax return, it is net of the $300 so TurboTax adjusts and adds the $300 back into Iowa income. The $300 is an "above the line" deduction on your federal income tax return but not an "above the line" deduction on your IA state income tax return.

[bilodyer]

Deluxe is making a deduction on my Iowa tax return of $300 in the adjustment area of the return reducing net income with typed Stmt adj on that line  then the program completes a form ia1040 line 24 other adjustment form

it should not do this when I select I’m itemizing deductions 

[KathrynG3]

Please confirm your total contributions reported when Itemizing Deductions on the Iowa state return and taking the standard deduction on your Federal tax return.

Between the adjustment on Line 24 for Charitable Contributions and the amount reported on the Iowa Schedule A, the total contribution amount should be what you intended to report.

See page 36 of the 2020 Iowa Expanded Instructions: 

jj. Charitable Contributions Charitable contribution for non-itemizers from federal form 1040, line 10b. The charitable contribution cannot exceed $300. IA 1040, Schedule A may not contain any charitable contributions which were deducted on this line.

This does not say a number cannot be on this line. It says Schedule A contributions cannot also include this $300.

[Dan]

I am seeing the same thing as bilodyer ($300 line 24 adjustment). My IA Sch A shows a total charitable contributions of $6347, which is the exact amount I entered into the charitable contributions section of turbotax delux.  If I am understanding you correctly, my IA Sch A should show $6047($300 less).  All of these forms were auto-filled by turbotax, so does this mean there is an error in the TurboTax program?  I updated the program today.

[SamS1]

Possibly an update to the Iowa program is needed.  For now,  lower your Sch A contributions by the $300 charitable contribution amount in Other adjustments.  I will forward this information up the ladder.

The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.