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Above the line contributions

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Above the line contributions

Mort - Skokie

It might be a suggestion to have the above the line be an automatic calculation the same way the program chooses between the standard deduction and itemized.

It could look to see if the t/p has the ability to itemize and if not are amounts entered into donoations

 

 

Status: New
Vote now if this is a good idea
10 Comments
lisa2
Level 1

This is absurd that for the price of the Lacerte software, it doesn't automatically deduct the charitable contribution  when non-itemizing. This new deduction has been on the books since last spring sometime, plenty of time for programmers to get this in the software.

Andi
Level 1

I cannot believe how horrible this input is!  Needs to be fixed ASAP!

StknCPA
Level 3

I was flabbergast when I discovered this did not happen automatically. Guess it must have been a programming decision as what we are asking would required a bit more programming.

ecurry
Returning Member

Changing this mid season would create a mess! It should have been done automatically from the beginning. 

Tax1040
Level 2

We shouldn't have to remember to check or uncheck the box when the facts of the return change. This could be easily overlooked and someone could take the standard deduction when in fact they could be itemizing. 

Bart A
Level 1

Need to Fix ASAP

NonaFisher
Returning Member
My fault that I didn't triple check to make sure an "above the line"deduction wasn't being made automatically with the Lacerte software. I have a bunch of returns that now need to be amended. I too was under the impression the software was doing what it was supposed to do. The "new" forms are hard enough to follow without a simple deduction not going where it should automatically. Please FIX this issue ASAP. We shouldn't have to duplicate data entry.
BobKamman
Level 15

I would like to hear from preparers in 43 states whether this would cause a problem for them.  If the federal tax is already zero, what's the point in reducing AGI by another $300 (and $600 next year, and who knows how much in the future)?  If it takes it off Schedule A, does that increase the amount of state tax owed?  Sometimes, programmers actually know what they are doing because they have to deal with everyone, not just Texans.  (For example.  Not accusing anyone here of being a Texan.)  

RDYCPA
Level 2

Yes, this should be automatic *if* a standard deduction is already calculated as the greater of itemized deductions. Some states (AZ) allow all qualified medical expenses so you'd enter everything and itemize for AZ purposes, but not Fed.

As for the note of further reducing AGI if tax is already zero - please consider this has implications on next year's, if any, underpayment penalty calculations which are based on PY AGI.

darrellp
Level 2

With the new charity deduction of $300 on page 1, Lacerte requires you to check a box to allow that deduction to flow to the front page. However, if the user finds more itemized deductions, Lacerte does not even inform the user that the itemized deductions are now the tax-preferred way.

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