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Level 5
February 15, 2021
Question

Schedule A, line 2 using 1040 line 9 instead of line 11

  • February 15, 2021
  • 3 replies
  • 16 views

I have some returns where the taxpayers is taking the standard deduction and the additional above the line charitable deduction.  So there is no bottom line impact on the return.  But the Schedule A line 2, which says to use the a mount from Form 1040 or 1040-SR, line 11 ( after the above the line charitable deduction) is actually using line 9 (before the above the line charitable deduction).  The form seems pretty clear.  Either the IRS form is wrong, or Lacerte's calculation is wrong.

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3 replies

rbynaker
Level 13
February 15, 2021

My expectation would be that it uses line 9 minus line 10a.  Line 10b is irrelevant when calculating itemized deductions.  If you're itemizing then line 10b will be $0.

George4Tacks
Level 15
February 15, 2021

Right below where you enter Cash Contributions, is a check box. Try checking that box. 

1=deduct charitable contributions if taking the standard deduction

Schedule A Current Year Contributions Screen 25; Code 1420

Enter 1 to both force the standard deduction and to deduct the lesser of $300 or the amount of current year charitable cash contributions entered.

Answers are easy. Questions are hard!
Kathleen1Author
Level 5
February 16, 2021

Actually, I've put a request in for the Lacerte program to optimize the Itemized deduction versus Standard plus charitable.  Otherwise we are forcing the standard deduction.  And if the client adds additional itemized deductions which puts them over on itemized, and we've already forced the standard deduction, that  could easily be missed.