Do charitable contributions get added back in on line 1 of the Capital loss carryover worksheet of Schedule D instructions?

[dllr597387]

I used the desktop version of TurboTax premier last year and purchased the 2022 version this year. Carrying over the data from 2021 to 2022 I see that that the Capital loss carryover worksheet line 1 is -2035.  I calculated it to be -2585.  This $550 difference so happens to be what my charitable contributions were in 2021.  Do charitable contributions get added back in on line 1 of the Capital loss carryover worksheet?

[Mike9241]

there is a capital loss carryover worksheet in the 2022 return which shows the computation. review it for accuracy. 

[dllr597387]

Line 1 is incorrect.  It has -2035. It should be -2585 unless charitable contributions get added back in. 

FYI

Line D of the Smart worksheet also has -2035.

2021 Form 1040 Line 11 is 23065, Line 14 is 25650(standard deduction + 550 in contributions), Line 15 is 0.

Subtracting Line 14 from Line 11 results in -2585 on Line 15, if you were allowed to enter negative numbers. 

[JulieS]

Yes, line 1 of this worksheet should be the same as your 2021 Form 1040, line 15. That number is your taxable income for last year, so yes, it is reduced by the deduction you took for charitable contributions. 

[dllr597387]

Yes, I agree. Unfortunately, charitable contributions were not deducted from the AGI when TurboTax 2022 imported the data from my 2021 TurboTax.  If they were deducted, as you correctly stated, is there any reason why TurboTax 2022 would add them back in during the importation of the 2021 TurboTax data?  Maybe because of some rule I am not aware of.

[JulieS · Accepted solution]

Line 1 is the amount from line 15 of your 2021 1040. Does this amount match your 2021 tax return? If the answer is yes, then there is nothing wrong with this field on the worksheet.  

If the number does not match, then the field should be corrected on this worksheet. 

I am not sure I understand your question at this point. You say you claimed a deduction of $550 and then you say it was not deducted. Please clarify your question. 

[dllr597387 · Accepted solution]

Thanks.  I will change the 2022 worksheet to match what should be there as opposed to what was transferred incorrectly from my 2021 TurboTax data.  Hopefully they correct this for next year.

FYI

Line 1 of the worksheet is not the amount from line 15, as it should not be.  It should be Line 11 - Line 14.  Line 14 is larger than Line 11, so Line 15 would be negative, but negative amounts are not allowed on Line 15, so Line 15 is 0 and Line 1 of the worksheet should be negative 2585 but it is not it is negative 2035.

Your statement "You say you claimed a deduction of $550 and then you say it was not deducted." I agree would be unclear, but that statement was taken out of context.  I said "Unfortunately, charitable contributions were not deducted from the AGI when TurboTax 2022 imported the data from my 2021 TurboTax."   Sorry if that was unclear but when TurboTax imports the data it is transparent to the user.   I assume it should subtract from Line 11 the amount on Line 14.  This is the way I have been doing it, before using TurboTax, for years when Line 15 would had been negative. This negative value is than used for Line D and Line 1 of the worksheet.
Thanks for your help!

[dllr597387]

Update for TurboTax programmers.  I got closer to where the error is happening.  It is not when the data is transferred from the 2021 taxes to the 2022 taxes.  It is the actual data in the 2021 taxes.  There is a form called Capital Loss Carryforward worksheet.  In this form, Line 1 is negative 2035 instead of negative 2585.  If you click on the "goto supporting form..." icon next to Line 1 it will take you to the "1040 or 1040-SR Worksheet" form line 15.  This value is zero, so from there I am not sure what calculations it uses to determine the correct amount to transfer to Line 1 of the "1040 or 1040-SR Worksheet" form.  I hope this helps.