Important Changes to Tax Credit Law with Regard to Federal Deductions

Important Changes to Tax Credit Law with Regard to Federal Deductions

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Your State dollar-for-dollar tax credit contribution may need to be made by Monday, August 27, 2018 if you are planning utilizing it for a 2018 Federal deduction

Yesterday, 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 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. This in no way affects your ability to receive an Arizona state tax credit & we will promote making contributions for State tax liability reduction purposes.

Arizona has five different tax credit opportunities:
  • Public School
  • Private School
  • Military Family Relief Fund
  • Qualifying Foster Care Charitable Organizations
  • Qualifying Charitable Organizations

Here is a link to the Arizona Department of Revenue’s information regarding tax credits:

https://azdor.gov/tax-credits

A link to our article if you need recommendations on where to make your donations:

https://www.pricekong.com/arizona-tax-credits-2018

Please keep in mind that these are only proposed regulations and are not final. Our concern is if made final, the date of August 27, 2018 will already be passed and Arizona taxpayers will no longer be able to claim their tax credit as a federal deduction.