Two questions about my 2022 return

[Suzanne-b52]

1.  Where do I enter the amount I paid when I filed for extension in April? The only place I can find in TurboTax is for the estimated quarterly payments. So the return documents keep showing that I owe far more than I do.

2.  I updated my charitable contributions, which increased the total amount of my charitable deductions. But TurboTax does not seem to have taken that additional amount into consideration, because the total tax amount owed is still the same as it was before I added several hundreds of dollars of cash donations. What's wrong?

[VolvoGirl]

#1   If your extension payment did not automatically show up on your 1040 or state return you need to enter it.  So make sure it's not already there before you enter it!

For 2022 Federal Extension payments should be on schedule 3 line 10. And go to 1040 line 31.

You can type estimates paid in the search box at the top of your return and click Find and it will give you a link to Jump To the screen where you enter Extension Payments.

To enter the amount you paid with an extension (including state extension)  go to

Federal Taxes (or Personal for desktop H&B version)

Deductions and Credits

Then scroll way down to Estimates and Other Taxes Paid

Other Income Taxes - Click the Start or Update button

Next page second section Payments with Extension

Either Visit All or Click Start or Update by the extension you paid

#2  It could be that the Standard Deduction is still more than all your itemized deductions.

Or maybe you are already getting back all that you can and more deductions won't increase it.

Itemized Deductions or the Standard Deduction can only reduce your income to zero and not create a refund.  Then you only get back any withholding taken out.

And by increasing your deductions it will decease your income and you may not be getting as many credits as before.   Also after you reduce your income to zero there is no more refund to get back but you still may owe for other things like self employment tax or the 10% early withdrawal penalty from 401k or IRA accounts.

[Suzanne-b52]

Thank you for the quick response. 

[Sean Enrolled Agent]

@Suzanne-b52 ,
Great questions! These are questions that do get asked a lot!

For the information about paying taxes to the IRS when you filed the extension, you will want to follow these simple steps: 

  

To enter the amount you paid with an extension (including state extension)  go to
Federal Taxes (or Personal for H&B/Self Employed version)
Deductions and Credits
Then scroll way down to Estimates and Other Taxes Paid

You are looking for Income Taxes Paid - Click the Start or Revisit button

On the next page, you will see the option to enter in the payments made when you filed an extension.

There is a section for "Payments with 2022 federal extension" that you can click start on in order to enter in the amount paid when you filed for an extension.
There is a section for "Payments with 2022 state extension" that you can click start on in order to enter in the amount paid, if any, when you filed for an extension with your state.


As far as your charitable amounts are concerned for tax year 2022, entering in cash donations will only help you if you are itemizing your deductions instead of taking the standard deduction.
TurboTax software will ask you questions about your deductions and will then help you make the determination if the standard deduction is right for you.

In order to take a tax deduction for a charitable contribution to an IRS-qualified 501(c)(3) public charity, you will need to not take the standard deduction in favor of itemized deductions. That means you'll list out all of your deductions, expecting that they'll add up to more than the standard deduction.

For more information about the standard and itemized deductions, feel free to review the following websites:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/standard-deductio...

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/what-are-tax-deductions-/L5CcKxGZE


I hope this information helps!