Your State dollar-for-dollar tax credit contribution may need to be made by Monday, August 27, 2018 if you are pla
ing to utilize it for a 2018 Federal deduction.
The Arizona taxpayers have had the benefit of being able to make a charitable contribution to a qualified charity and take that amount not only as a tax credit against their Arizona taxes but have also been able to take a federal tax deduction to save federal taxes. However, that could possibly change soon. On Thursday, August 23rd, the IRS issued proposed regulations that could affect your ability to utilize your state dollar-for-dollar tax credit as a federal deduction if you itemize. This is just a proposed regulation at this time. It states only tax credit contributions made after August 27, 2018 will be affected by this proposal if it is approved. We are sharing this information out to alert Arizona taxpayers so they can make informed decisions regarding their tax credits. This in no way affects your ability to receive an Arizona state tax credit. Arizona has five different tax credit opportunities:
Public School
Private School
Military Family Relief Fund
Qualifying Foster Care Charitable Organizations
Qualifying Charitable Organizations
For those of you that aren’t familiar with all the different deduction opportunities for the Arizona credit, see below for the most recent information and deductible amounts. Note: the links will need to be plugged in manually, they are not clickable. Additional detailed information can be found on Department of Revenue’s information regarding tax credits: https://azdor.gov/tax-credits
Please keep in mind that these are only proposed regulations and are not final. Our conce
is, if made final, the date of August 27, 2018 will already have passed and Arizona taxpayers will no longer be able to claim their tax credit as a federal deduction. As always, if you have any questions, please reach out. We are here to serve. If you would like to discuss how these changes affect your particular situation, and any pla
ing moves you should consider in light of them, please give me a call at 602-482-9101 or email me at nitin.gupta@atlascpas.com
About the Author
Nitin Gupta is a Partner and CPA at ATLAS CPAs & Advisors PLLC and licensed in Califo
ia and Arizona as a Certified Public Accountant. With 28+ years of experience, Nitin has been a Tax Consultant with full expertise in federal, state, and local taxation for highly complex corporations, partnerships, individuals, estate, gift, and trust tax retu
s. He has extensive experience in all aspects of financial accounting in multiple industry segments such as real estate, construction, medical, manufacturing, wholesale, retail, professional services, information technology, and entertainment.
