The following are answers to frequently asked questions about charitable contributions on individual returns in Lacerte.
How do I enter contributions for clients taking the standard deduction?
For tax year 2020 returns, filers taking the standard deduction can claim an adjustment to income of up to $300 (or $150 if Married Filing Separately, $600 if Married Filing Jointly). The adjustment is reported on Form 1040, line 10b.
To generate this deduction:
- On Screen 25, Itemized Deductions (Sch A), scroll down to the Cash Contributions section.
- Locate the 60% Limitation / 100% Qualified Contribution Limitation section.
- Enter the contribution amount(s) in Cash contributions (Ctrl+E).
- Check the box labeled Deduct cash charitable contributions if taking the standard deduction (forces the standard deduction).
Why aren't charitable contributions from a K-1 flowing to Schedule A?
This is most often caused by Schedule K-1 basis limitations. Check the following items:
- Make sure all the totals entered for cash contributions and carryovers on Screen 25, Itemized Deductions (Sch A) and Screen 20, Passthrough K-1's.
- Check if any amounts have been entered in the Basis Carryovers section of each K-1.
- If the totals for the amounts entered in the input screens are lower than the amount on the Schedule A, Line 11, view the Basis Limitation Worksheet on the Forms tab.
- If the totals for the contributions are limited by basis, the carryover totals will show on the General Information worksheet.