General chatter - Quick Tax Question (TurboTax)
04-15-2011, 11:30 PM
I KNOW!!! I've totally procrastinated this year! And I apologize!
I have about $600 in charitable deductions from last year. I added them in there on TurboTax.. itemized it, but nothing changed on my federal taxes. I unfortunately owe money this year (booo :( ) and I was expecting the charitable deductions to kinda offset the amount I owe, but nothing changed.
Am I missing something here? I mean it's TurboTax... this isn't usually hard. Does it come off the State instead? (I didn't do the state yet)
Any help would be appreciated. :dizzy:
04-15-2011, 11:57 PM
It may be that the standard deduction is higher than the itemized deduction.
04-15-2011, 11:58 PM
Turbotax will tell you if it is better to itemize or take the standard deduction. If you can't itemize, then I'm not sure charitable contributions will count. Did you have other major deductions like a mortgage?
When I added my charitable deductions, every item I added brought down my tax payment.
04-16-2011, 02:05 AM
You are likely taking the standard deduction. Unless you reach a certain number of deductions, the standard deduction is a better deal. But if you aren't doing itemized deductions, charitable donations won't make a difference.
Unless you have other major deductions, most likely your best bet is to take the standard deduction (I didn't get any benefit from itemizing until I bought a house).
04-16-2011, 08:03 PM
Well poo. :( No one ever tells you these sorts of things. Everyone always says "Oh! It's Tax Deductible!!" It kinda sucks. Not that I did all those donations and contributions with the motivation of a tax deduction... But it seems pretty unfair that if I get a standard deduction, and I donated $700 worth of clothes and money.. that another person gets the same deduction, and didn't contribute diddly squat. :( What's up with that.
*sigh* Oh well. Yea, I owe a pretty penny this year. Wont happen again for next year though. I changed my w-9 at work two weeks ago. Even though I followed the directions and took the deductions I was entitled to have, it was apparently too much. :(
Thanks for the help :)
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