I have a couple where one earns $50,000 and the other earns $30,000 plus we have over $4,000 in donations. The lower income taxpayer has a tax bill and the higher income has a refund. Optimization puts the donations on the higher income return (and I understand that as generally the best results are achieved that way.)
In this case, the combined bottom line is the same no matter who claims the donations, so why not eliminate the bill and get two refunds by giving the donations to the lower income taxpayer.
More importantly, we are now past the filing deadline so penalties and interest are added. Therefore, applying donations to the higher income taxpayer will NOT be optimal once those are considered.
I know the software is complex. But I also hate overrides which is my only solution to avoid the penalties and interest.
(One of the things I miss from Cam’s last software product is the ability to move one or all donations to the spouse WITHOUT overrides. Can’t we bring back that option?)