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Cash Charitable Contribution

Taxpayer is filing 2020 MFJ return and is taking standard deduction (his 2020 AGI is $36,000). He had $22,000 cash contribution. He will take $300 on Line 10b Form 1040, Line 11 Schedule A should only be $21,600 (60% of $36,000) and carryover $100 to future years. Is this correct?


Option #1: How to input so that the program will automatically take $300 to Line 10b Form 1040 and $21,600 to Line 11 Schedule A and carryover $100 to future years?


Option#2: Are you allowed to just take $300 and carryover the rest $21,700 to future years($22,000 minus $300)? How to input so that the program will automatically just take $300 to Line 10b Form 1040 and carryover the rest $21,700 to the future?


Thanks for your time and comment!

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goshen9882
Level 2

Yep.  Good call @sjrcpa .

So that means no charitable contribution carryover.

View solution in original post

9 Replies 9
qbteachmt
Level 15

Are you trying to use Both deduction areas? The $300 is for Standard Deduction tax filing. Otherwise, the $300 is already part of the Itemized donation details.

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@qbteachmt Thanks for your comment.  TP is not taking both standard and itemized deductions.  TP is only taking standard deduction but wants to see his charitable contribution is printed on Sch A (so we did a force print for Sch A).  

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goshen9882
Level 2

I believe option #1 is the correct methodology, except, I would only include the $300 on the current year return and make a note that there is $100 charitable contribution carryover to 2021.

I agree that $21,600 is the current year limit that would, in general, go on Schedule A, leaving $400 carryover.

However, as you indicate, they will be using the standard deduction, so the $21,600 is "utilized".

This leaves the $400 of which you will use $300 as you are now taking the standard deduction.  This leaves $100 carried over to 2021.

@goshen9882 Many thanks for your advice!  Can you let me know where I can input in PTO the $300 adjustment to AGI?  I cannot see it in the Adjustment to AGI table as well as in the Sch A tab.  Also, just want to clarify, I have to manually input both $300 and $21,600.  

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@goshen9882 I need to enter $21,600 on Sch A because client wants to see his charitable contribution on Sch A so I did a force print.  Thanks.

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sjrcpa
Level 15

Isn't the 2020 limit on cash charitable contributions 100% of AGI?


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goshen9882
Level 2

Yep.  Good call @sjrcpa .

So that means no charitable contribution carryover.

View solution in original post

@goshen9882 @sjrcpa @qbteachmt 

Many thanks for your comments.  But the program keeps computing Sch A line 11 based on 60% AGI limitation instead of no limitation as pointed out by @sjrcpa.  Perhaps my input was wrong.  Please advise how to input based on the following info:

Total Cash contribution $22,521.  Charitable deduction $300 on Line 10b Form 1040. Line 11 Schedule A $22,321.  And no carryover. 

Thanks again for your time.

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