Turbotax won't fix problem, wants me to enter data on form

[diverjer]

Using Windows 10 CD version of 2021 Turbotax Deluxe.    Married filing jointly.   I enter all possible deductions, but don't have enough so it takes the standard deduction which is fine.  I have several thousand dollars in charitable contributions that I entered, I need these entered in as the state lets me take all charitable contributions as a deduction.   Turbo tax does fine and enters $600 in line 12b (I have looked at forms).  Page 32 of Federal instructions says enter amount of your contributions, but NOT MORE than $300 file single or $600 filing joint.  So bottom line so far Turbotax is doing a fine job at this point.   Turbotax does the Federal review and says all is fine.

I do the state and all is fine, all the data I entered for deductions get moved over to state, medical, charity and personal property tax.   Turbotax does the state review and all is fine- no errors.

Then I get to the final review and Turbotax increases my Federal tax $36.00.  I look around on the forms to find out why and find that on that last final review Turbotax changed line 12b to $300.

Spent 2 hours plus on phone and get answers like you can't enter charitable contribution and enter data on line 12b, I say and show them that Turbotax entered the $600 itself, I didn't enter it.  Turbotax correctly knew that I should have line 12b as $600. 

Turbotax should not be changing it back to $300.   It was right to begin with and passed the federal review and left the $600 in 12b at that point in the process.

So far Turbotax solution is to remove all charitable contributions, then Turbotax still puts in the $600 dollars on 12b which is an ERROR and audit exception, read federal instructions on 12b page 32.   Then they say go into my state and enter charitable contributions manually on the state form.  That works, but why have Turbotax if I have to work directly on a form and can not enter actual data on contributions?   Then there is the issue of Turbotax putting $600 in there even when I take out all charitable contributions.   For me it wouldn't be a problem, for others it could be a problem if audited.

Disappointed, years of no problems and now things are a mess and I am basically told that live with it.  

[diverjer]

I should add, the two people I talked with were very nice and agreed something is wrong, but there was only so much they could do and a case was maybe going to get made up??

[diverjer]

After some more checking and looking at last years (2020)  tax instructions, I believe they are using last years instructions on that last final review.   In 2020 $300 was for married  filing jointly and $150 for single.   Back in 2020 tax return it was on line 10B. 

Turbotax 2021 has a bug in final review using last years amounts.   The bug is not in first federal review of 2021 or just not checking that field.

[diverjer]

Well no help here or with support, guess will report Turbotax to the Treasury Inspector General for Tax Administration for misconduct and abuse by a Tax Professional. 

[DanielV01]

@diverjer  TurboTax (and all tax software companies) have had a real challenge keeping up with all of the tax changes enacted during COVID, and what you are reporting is a known issue that we are working on.  The charitable deduction provision is one such example.  As you have experienced, there is a programming dilemma related to this deduction.  On the one hand, cash donations up to $300 (and up to $600 for a married couple filing jointly), do receive a direct deduction on the tax return.  Last year, it was a "below-the-line" deduction; in other words, a deduction taken before AGI is determined.  This year, it is still a deduction, but where it is taken is slightly changed:  after AGI is determined.  Also, the amounts changed somewhat.  Last year, a $300 amount was allowed regardless of filing status (except for married filing separately, which was $150 each).  On top of this, most states do not recognize the deduction, so all of this needs to be recalculated for each and every state program.  There are a lot of moving parts to all of this, and programming it all is not as simple as it seems, especially since there were quite a number of other changes which have also created programming challenges to report everything.

Our customers deserve a program that delivers everything, and we take all feedback seriously.  I can say that these programming experiences have been escalated to be improved, and we do appreciate feedback from our customers so that we can get it right, or at least better.  In the meantime, if you were able to come up with a way to claim the deductions correctly, we are thankful that a solution was made available.  Thank you for your patience in the meantime while we strive to improve.

[diverjer]

Thanks for your reply.  I understand the complex issues of working on federal changes and integrating them with all the state's requirements.   On top of that you have an online and workstation version do keep up to date.   I spent 36 years as a software programmer for the state, well the last 13 years as system software as I liked finding and fixing more difficult issues.    I have never had an issue until this year with your software.  That is strange as my taxes now are much less complex.  

Anyway, the workaround they mention for me of filling out the form directly is not a good response.   I could do that, but it would be easier for me to just skip that last review and go directly to filing.   Also, filling out forms defeats the whole purpose I get Turbotax. 

I was suppose to get an email from the second level person I talked to with case number and a phone call, that hasn't happen.  However, she may work a late shift as that was last night at around 9PM CST.    If I actually talked to a high level analyst and showed them what is going on, I believe they would be able to almost go to the line of code that is causing an issue. 

Thanks and have a great day, actually got above 32 degrees here, so things improving on that front. 

[diverjer]

Got email saying it was fixed, but it isn't fixed.  I have the latest version loaded today.