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Where to enter above the line charitable contributions? New $300 contributions allowed.

peterhawaii
Level 3

There is a new rule for 2020.  Above the line deduction up to $300 charitable contribution. The ProSeries professional program has a line for the deduction.  But it is a flow through line and the program is not helpful in letting you know where to make the original entry.

In 2020 you are allowed to make this deduction if you are not itemizing.

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11 Replies 11
abctax55
Level 15

I believe you enter it where you enter any normal charitable cash contribution & it then flows to 'above the line' as appropriate, even if not itemizing.

(I wanna be a member of the pot stirring club too)
peterhawaii
Level 3

The only entry I made on Schedule A was a $500 contribution.  Nothing is flowing through to Form 1040 line 10 b.

And for form 1040 line 10 b will not let me make an entry without over riding.

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peterhawaii
Level 3

Now, unlike before the computer is correctly handling the situation.

On Line 10A inside the computer reads "Enter the smaller of these tax contributions made or $3000 on Line 10b below if you  take the standard deduction  ___500_______.

 

Box 10 b was now in pink (red) and I entered $300 and now the computer is properly handling the situation.

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Just-Lisa-Now-
Level 15
Level 15

Use the 1040/1040SR Worksheet (not the actual 1040) and scroll down to line 10b and enter it there.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
kgudgel
Level 3

Tried this with a practice client with social security income in ProSeries Professional.

By entering the above the line $300 deduction, ProSeries is changing the amount of social security that is taxable.  Why?

Didn't make sense to me, so I tried it in another software, and they make no adjustment to "total income" (line 9 of 1040) when $300 above the line charitable deduction is entered.  That other software behaves as I would expect - it modifies the AGI (but not total income) line.

HELP!!!! 

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rbynaker
Level 11

For 2020 this is an "above the line" deduction which means it is used in the calculation to determine AGI.  The calculation of taxable Social Security is based on Modified Adjusted Gross Income.  Since 2020 non-itemized charity is above the line it will impact MAGI which may have an impact on taxable SS.

So if your client is in the zone between 0% and 85% taxable social security benefits then a qualified charitable contribution will make a slight difference in the calculation on the SS worksheet.

Subject to change at any moment, but for now you can look at the draft worksheet on page 30 (pdf page 31) of the draft 1040 instructions:

https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf#page=31

Line 6 of the worksheet includes an adjustment based on 1040 line 10b (above-the-line charity).

Are we having fun yet?

Rick

JSK
Level 1

I entered $300 on Schedule A, Line 11.  That amount flowed through to the 1040 worksheet,Line 10a.  I tried to enter $300 on line 10b, but I keep getting an error message.  No matter what amount I put on that line I get an error message.  Can someone help me with what I am doing wrong?  Thank you.

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emorrissa
Level 1

It looks like the charity donation is counted twice. Once on the worksheet for social security benefits, line 6 and on Form1040, line 10b. I wrote $0.00 on the social security benefits, line 6 so the charity donation would not count twice. I did not use computer software to complete my tax forms.

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qbteachmt
Level 15

@emorrissa 

"I did not use computer software to complete my tax forms."

Then why are you posting in a community for how to use ProSeries software?

Because software worksheets already take into consideration modifications because of various entries on tax forms and on worksheets.

I think you are lost on the internet.

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"Level Up" is a gaming function, not a real life function.
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Bob FDR
Level 1

Thanks!  But why doesn't TurboTax automatically flow the $300 from Schedule A to line 10b if you're taking the Standard Deduction?

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qbteachmt
Level 15

@Bob FDR 

You are posting in a Topic for using ProSeries programs.

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.

 

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"Level Up" is a gaming function, not a real life function.