Charitable contributions - state tax credit

Forum|Forum|1 year ago
February 8, 2025
1 reply
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We made donations of appreciated stock to an Endowment fund, which qualifies for a 20% State tax credit.

1. Federal instructions say to reduce fed itemized deductions by the amount of the credit. How/where should I include this?

2. Amount of donations to the Endowment fund qualify for state tax credit, but not as state itemized deduction. How/where to reduce state itemized deductions by that donation.

Thanks in advance for any guidance

AmyC

Employee

1.Follow these steps:

Determine the state credit. For example with unknown state - $20,000 donation and state credit is 50% then $20k x 50% = $10,000 deduction to your federal charity amount.
Reduce charity amount on federal deductions from $20,000 to $20,000 minus the state credit from step 1 for your state.

2. What state? The deduction may have already come out from your federal. You can check your state returns for the flow. To see your forms:

In desktop, switch to Forms Mode.
For online, see How do I preview my TurboTax Online return before filing?

You can reply with more information for additional help.

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rshjunkAuthor

Appreciate the help, but here is what happens. For this example, Ky is the state

$50k donation, $10k state credit

1. All donations were appreciated stock. Tried to input a negative stock donation and Turbo ignored. Input negative cash of $10k and it ignores that also.

The only way I have been able to get correct number for Federal is override the total on Schedule A donations.

2. State is Ky - was finally able to get state to accept an adjustment to Schedule A, reducing donations by the $50k per example, but it is a workaround, not the real answer I think