Skip to main content
August 31, 2024
Question

Pennsylvania Education Improvement Tax Credit (EITC)

  • August 31, 2024
  • 1 reply
  • 0 views

I received a K-1 for a 2023 Pennsylvania Education Improvement Tax Credit (EITC)  payment ($1000) I made to a PA Foundation and entered the information in the K-1 section of my 2023 Federal tax return.  Turbo Tax correctly recognized 90% of the contribution ($900) as a tax credit on my PA State return, but treated 100% of my EITC payment ($1000) as a Gift to Charity on my Federal return.  As I understand the Federal Tax Code and instructed by the Foundation receiving the contribution, only 10% of the contribution (the amount the state doesn't allow for the credit) is allowed by the IRS as Federal Charitable deduction.  I tried accessing the detail  Charitable Contributions Federal Tax Form on my return and adjust the deduction from $1,000 to $100, but found the total contribution amount ($1000) is automatically transferred from the K-1 to the Federal Charitable Contribution worksheet and  will not allow an adjustment to the amount.  As result, the Charitable Deductions on my Federal Return are overstated by $900.  How do I correct the amount I am reporting as a Gift to Charity deduction on my Federal return?

    1 reply

    September 1, 2024

    @DR2003 are you taking the standard deduction?  if so, it doesn't matter - let it go. 

    DR2003Author
    September 2, 2024

    I itemized deductions.