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Level 2
posted Mar 23, 2022 2:32:30 PM

What is the proper amount to enter when filing charitable contribution

Hello, i have a question about how to fill in this information within Turbotax, i assume this is a common question, but i am not sure exactly. Here is my scenario

I am taking standard deduction married which means i have a $600 credit limit

I gave out $1000 to charities in 2021

I understand unused charitable contributions can be carried over to other years. 

My question then is what is the proper way to file this within turbotax? Do i

a) Write $1000 this year, then put the carryover $400 when i file in 2022?

b) Write $600 this year, then put the carryover $400 when i file in 2022?

TIA

0 6 567
6 Replies
Expert Alumni
Mar 23, 2022 3:57:34 PM

For 2021, you may deduct up to $600 for the Federal 1040 line 12b Charitable Cash Contributions under CARES Act if:

 

  • You file married filing jointly, and
  • You file using the standard deduction.

Cash Charitable contributions over $600 are not deductible as or carried over as Federal 1040 line 12b Charitable Cash Contributions under CARES Act for tax returns in subsequent years.

 

Charitable contributions which are deducted towards Schedule A Itemized Deductions may be limited and carried over.

 

This TurboTax Help states:

 

There's also a limit on how much you can deduct. The basic rule is that your contributions to qualified public charities, colleges and religious groups generally can't exceed 60 percent of your Adjusted Gross Income (AGI) (100% of AGI in 2020 for qualified charities).

 

  • The caps are a bit lower for gifts to other types of nonprofits. When it comes to gifts of appreciated property, the limit drops to 30 percent of AGI.
  • If these restrictions limit your write-off in the year of the gift, the excess deduction carries over to the next year.

See this TurboTax Help.

Level 2
Mar 23, 2022 4:45:30 PM

Thanks for your answer James,

Would that be option the first option then or the second option, i think thats my actual confusion

Expert Alumni
Mar 23, 2022 5:37:39 PM

You should simply enter the full amount of your contributions in TurboTax. If you have enough itemized deductions to benefit from deducting them as opposed to using the standard deduction, TurboTax will apply your $1,000 contributions to your itemized deductions. If not, you will get the smaller $600 deduction. If you get the $600 deduction, you will not be able to carryforward that rest of your contribution deduction to next year.

 

 

Level 2
Mar 24, 2022 6:11:54 AM

Thanks for the reply ThomasM125.

Should it be option 1 then or 2? I totally understand the carryover rule, i am just trying to figure out what to do in this exact situation. 

Level 2
Mar 24, 2022 6:20:49 AM

Am going to close this out because i think i am not getting clearcut answers.

I will go ahead and enter $0 and carryover all the $1000 since it can't be used this year

Expert Alumni
Mar 24, 2022 6:43:07 AM

Here are the facts for your situation. You enter the total amount you gave in 2021 and if TurboTax adds that to your standard deduction then that is the best option.  If you actually itemize deductions because they are greater than the standard deduction TurboTax will use the itemized deductions.

 

Note:  You can carry over any contributions you can't deduct in the current year because they exceed the limits based on your adjusted gross income (AGI). Except for qualified conservation contributions, you may be able to deduct the excess in each of the next 5 years until it is used up, but not beyond that time. 

  • If you do not enter the contributions on your tax return and if they are not limited or you are unable to itemize your deductions there is no carryover.