BIG ISSUE with Non-Cash Contributions, Form 1040, Schedule A (Proseries has changed something 5-26-23))

[mm1]

BE AWARE: I am working on a client who made $1550 in non-cash contributions and itemizes. When I reviewed Schedule A, Contributions were off. Non-Cash showed as $0. When I checked the reference on this line it says "Schedule A, Line 12, Non-Cash: The sum of the amount on Line A of the Noncash Contributions Worksheet unless the total is greater than $500. Then Line C on the Noncash Contributions Worksheet"

Well the smart worksheet has no line C that I can find. And on my client it throws a $0 in non-cash. The Form 8283 is present and is correct. My client also has contribution carryovers of $7303. Proseries used $77 of that carryover from prior years and totally ignored non-cash contributions for 2022.

Not only that but it messes up the Contribution Carryover sheet amounts to 2023. AND because the State where he lives has a limit based on the State income and not the Federal, it has now messed up the State return (AL). It takes exactly the same $0 non-cash plus the $77 carryover from prior year to the State return and I now have to override the carryover from prior years amount on the State Schedule A. 

What happened to Proseries?!!! It was working correctly and now does not. They need to fix this as overrides are not good for e-filing. Why are they changing this after 4-18th anyway? Every day I have a message that Proseries has been updated to this day. They sure messed up this time.

[Skylane]

Working fine for me.   on the noncash smart worksheet, lower of cost/adj basis or fmv

[mm1]

We are on the network version where each workstation has the Proseries software and data files are on the server. I had another preparer open the client file and re-enter the Schedule A amounts after I had deleted Schedule A and saved the file. The same result happened on her workstation. I guess I have a choice of just overriding the figures and try to e-file it or try an forced update (ours is on auto updates overnight) to see if that solves the issue. I will have to contact Proseries Technical Support to see what is wrong if a forced update on the workstations doesn't correct this. Luckily, not that many clients we are doing now are itemizing and hoping I can get this resolved before facing this again.

I can't understand why all of our workstations have the issue but you do not since each is updated by Proseries separately. This is truly odd.

[BobKamman]

I don't want to wade into the swamp of limits on charitable contributions based on AGI, especially when there are carryovers, but this is from Pub 526:

Noncash contributions to 50% limit organizations. 

If you make noncash contributions to organizations described earlier under First category of qualified organizations (50% limit organizations), your deduction for the noncash contributions is limited to 50% of your AGI minus your cash contributions subject to the 60% limit.

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Without some real numbers to work with, I'm not sure how this applies to your situation.  It could be that the software is trying to save your bacon, while you are trying to fry the software. 

[mm1 · Accepted solution]

I am going to start fresh next Tuesday. I have manually calculated the contribution limitation based on the Pub rules and the end result is correct on Schedule A on the federal (up to 100% of AGI) however the carryover worksheet is wrong. It just doesn't show any non-cash contrib on the line on Schedule A and shows use of a part of the carryover contributions used. It then passes this exact copy of cash contributions, $0 non-cash and $77 of carryover contributions used to the Alabama return. Alabama has a different AGI than Federal and a different carryover contribution amount. Alabama has no record of the non-cash contributions since it is showing $0 on the federal which then impacts the AL contribution carryover. It won't let me change those figures in AL without overriding them. This whole thing has given me a massive headache and I hope with a fresh mind on Tuesday I can figure out what it is doing and how to fix things and make them work so that it e-files. Thanks for your input. Much appreciated!