Courtesy of BeachFleischman CPAs
On August 23, 2018, the IRS released some much anticipated regulations to address the various state tax credits available to taxpayers. The resulting rules will have a significant impact on the Federal tax treatment of the various Arizona charitable tax credits.
The effective date of these rules are proposed to apply to amounts paid after August 27, 2018. As a result of these proposed regulations, we are encouraging clients that take advantage of these credits to make all eligible contributions prior to midnight on August 27, 2018. We are attaching an updated summary of the various individual income tax credits available to Arizona taxpayers.
The new regulations would reduce the charitable contribution deduction by the amount of any state or local tax credit that the taxpayer receives. As a result of these changes, taxpayer’s who make a donation after August 27, 2018 and claim an Arizona credit on their tax return will no longer be able to also claim the Federal charitable contribution for the associated donation.
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.
As always, if you would like to know more about these credits or find out how they would apply to your specific tax situation for 2018, please contact BeachFleischman or your personal tax professional.
The State of Arizona allows you to receive a dollar-for-dollar Tax Credit on your state income tax when you donate to Intermountain Centers.
Our Federal Tax ID # is 85-0254535
(Formerly the Working Poor Tax Credit)
Donations can be made by using the donate button to the right, by mail or by calling (520) 721-1887 x-1149. You can donate up to $800 when filing jointly or up to $400 when filing as an individual.
2. Private School Tax Credit
Donations designated for the Intermountain Academy can be made to support the educational programs for children diagnosed with autism through the Institute for Better Education (IBE) website: www.IBEscholarships.org. You can donate up to $2,173 for a married couple or $1,087 as an individual. Be sure to designate your donation to Intermountain Academy.
3. Arizona Foster Care Tax Credit
Help an Arizona foster child through a gift that gives them hope for a brighter future. Your gift comes with a dollar-for-dollar tax credit on your Arizona income tax return. Donations can be made by clicking the “Donate” button to the right, by mail or by calling (520) 721-1887 x-1149. A tax credit can reduce what you owe in state taxes by $1,000 when filing jointly or up to $500 when filing as an individual.
Taxpayers may combine all three tax credits each year: Arizona Charitable Tax Credit, Private School, and Arizona Foster Care Tax Credit.
Our Contact Information
Intermountain Centers
994 S. Harrison Rd
Tucson, AZ 85748
520-721-1887
