Individual Returns (1040)

Itemizers

Individual taxpayers can generally only deduct charitable contributions if they choose to itemize their deductions. Available data entry for an individual return are as follows:

• Cash charitable contributions may be entered on the A screen, line 11.

• Non-cash Charitable Contributions of less than $500 may be entered on screen A, line 12.

• Non-cash Charitable Contributions of greater than $500 must be entered on screen 8283, located on the Adjustments tab.

• Charitable contributions carried over from a prior year can be entered using the link beside line 13 on the A screen. Enter the charitable contributions carried forward from previous years on the appropriate line of the Charitable Contributions Carryovers screen. The amounts entered are calculated and carried to Wks CARRY. Watch the video Charitable Contributions Carryover for a demonstration.

Allowable amounts flow to Schedule A in View/Print mode, if produced. If the deduction is limited, refer to Wks CCLMT to view the limitation calculation. Also see Publication 526 for limits.

Non-itemizers (2020 and 2021 only)

In Drake Tax 2020 and Drake Tax 2021, an above the line charitable contribution deduction is allowed for those who are taking the standard deduction. An entry can be made on the A screen > line 11 Qualified cash contributions and the allowable amount will show on Form 1040, line 10b.

In Drake Tax 2020, the amount is limited to:

• $300 if single, head of household, or qualifying widow(er);

• $300 if married filing jointly; or

• $150 if married filing separately

In Drake Tax 2021, the amount is limited to:

• $300 if single, head of household, or qualifying widow(er); or married filing separately, or

• $600 if married filing jointly.

Fiduciary Returns (1041)

Per the 1041 instructions, any part of the gross income of an estate or trust (other than a simple trust) that is paid (or treated as paid) during the tax year for a charitable purpose specified in section 170(c) is allowed as a deduction to the estate or trust. Enter charitable contributions on screen 4 Schedules A, B, & G, under Schedule A - Charitable Deductions.

Partnership Returns (1065)

Enter cash charitable contributions on the K screen > Deductions tab, lines 13a or 13b, A-G.

Enter non-cash (50%) contributions on screen 8283 (Other Forms tab), which can be opened with the link on the K screen.

This carries amounts to Schedule K-1 so the partners can report the amounts on their returns.

S corporation Returns (1120-S)

Enter cash charitable contributions on screen K > Deductions tab, lines 12a A-G.

Enter non-cash (50%) contributions on screen 8283 (Other Forms tab), which can be opened with the link on the K screen.

This carries amounts to Schedule K-1 so the shareholders can report the amounts on their return(s).

Corporation Returns (1120)

Enter cash charitable contributions on the DED screen, line 19. This entry adjusts any amounts flowing from a K1P screen, line 13, codes A or B.

Enter non-cash charitable contributions on screen 8283 (second Other Forms tab).