Question

Charitable Contributions Error

Forum|Forum|5 years ago
March 22, 2021
1 reply
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When I go into review, I get error: Cash Charitable is too Large. I entered $275 for cash charitable contributions and I am not itemizing.

I use TT Home and Business

Why error and is this being fixed.

TurboTax Home & Biz Windows

KathrynG3

This result occurs depending on the sequence of charitable donation entry details. It can be corrected.

Return to the Donations section of your return, remove your entry in the CARES Act Charitable Donation screen, and enter it first in the regular charitable donations section so that you will receive the $275 above the line deduction without error.

The extra cash donation is allowable up to $300 for all taxpayers except married filing separate, who would each have a maximum of $150.

To do this in TurboTax, follow these steps:

First, enter in the charitable donation amount as you normally would.
- From the left menu, select Federal.
- Select the second tab from the left across the top, Deductions & Credits.
- Scroll down to Charitable Donations.
- Enter your details.
When finished entering all donations, select Done with Charitable Donations and Continue.
Scroll to the end of Deductions & Credits and select Done with Deductions.
- You may need to respond to any other additional questions. You will eventually see: The Standard Deduction is Right for You!
- Click Continue.
- Now, you will see Charitable Cash Contributions under Cares Act where you will see any qualified contribution amount already entered from your earlier posts. Select Continue.
  - If you have entered something else in this field, delete it so that TurboTax will calculate it automatically.

For more information, see: Charitable Contributions - TurboTax Tax Tips & Videos

D

dfernand47

The Contribution error continues with 2021 software. This year the maximum deduction has been expanded for those who do not itemize; $600 for married couples, $300 for singles. Turbo Tax ( Premier) only allows $300 for married.

PER IRS:

COVID Tax Tip 2021-143, September 28, 2021

Recent legislation includes several provisions to help individuals and businesses who give to charity. The new law generally extends four temporary tax changes through the end of 2021. Here's an overview of these changes.

Deduction for individuals who don't itemize

Usually, taxpayers who take the standard deduction cannot deduct their charitable contributions. The law now permits taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions they made to certain qualifying charitable organizations.

These taxpayers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions to qualifying charities during 2021. The maximum deduction is $600 for married individuals filing joint returns.

DoninGA

Employee

@dfernand47 The software has not been updated to the maximum amount of $600 for MFJ. The IRS has not finalized the Form 1040 which has the charitable contribution on Line 12b.