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?
Comments
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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.
