FreeTaxUSA Error with Charitable Deduction Limits (Capital Gain Property 30% Limit)
Hello - I believe I have found a possible issue/error with FreeTaxUSA 2024. I made a large amount of charitable contributions in 2024 in the form of donated stock - or Capital Gain property. According to the IRS, deductions for Capital Gain property are supposed to be limited to 30% of my AGI, with the rest carried over to following years. Right now as I enter my tax information, my donated stock exceeds 30% of my AGI but FreeTaxUSA is showing a deduction for the full amount. I believe this is wrong, unless it somehow gets fixed up later in the process. Anyone have any insight here?
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The software should properly limit the donation of your capital gain property to 30% of your AGI. I just tested it in an account and my test amount was limited. However, depending on the information entered in your account, you may be seeing something different. It would probably be most helpful to contact customer support from within your account so they can view the specifics of your account and help identify what is occurring with your charitable stock contributions.
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I just tried again and it's still doing it. I was already comparing this process to TurboTax this year, and (gasp) TurboTax actually does this right. Very disappointed in FreeTaxUSA here.
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Hello Franklin 7777,
Thank you for reaching out and sharing your experience. We appreciate your comments.
Currently, FreeTaxUSA does not support the 30% AGI limit for capital gain property at this time.
Your feedback is valuable to us as we continually seek to enhance our services. If you have any further questions or need assistance, please feel free to contact our support team. They are there to help with any complexities you may encounter.
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Wow, that's legitimately surprising - and blatantly incorrect. If I filed today, it would be flat-out wrong. Glad I'm using this as a comparison to other programs that do it right. Really disappointing.
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This limitation still exists for tax year 2025, I confirmed with support today
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Just ran into this too! Is there a way to force freetaxusa to use the right number, or do I need to switch products?
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Hello silver_cattle and Danfu! Unfortunately, FreeTaxUSA does not currently support the automatic 30% AGI limit calculation for capital gain property donations. This is a known limitation of the software, and I'm sorry for the frustration this causes.
If the 30% limit with full fair market value is the correct and more beneficial treatment for your situation, then unfortunately you would need to prepare your return using a different tax software that supports that calculation.0 -
Here we are on March 29, 2026. This stock (property) donation 30% AGI limit non-calculation mistake is still there. Wow! What a disappointment.
I was pretty excited to read all the buzz about FreeTaxUSA and decided to give it a good side by side comparison with TurboTax. I really, really like the FTUSA interface over TurboTax. But a problem like this is a non-starter. The two software programs are in lock step until it hits this problem. It is the only difference. I rarely do a large donation like this, and I feel lucky I tried something like this on this tax year to give me a feel for the confidence factor of FTUSA. My confidence is officially LOW.
There's no excuse for this. It should at least throw a warning screen or something. This is a simple calculation that the IRS will easily flag and send a bill. I can't believe it.
I'm going to stick with TurboTax for now. It does it right and will handle the carry over next year. Maybe I'll try again in a few years to see if FTUSA gets their act together.
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