IRS Proposes Changes to Charitable Contribution Rules related to State Tax Credits

08-27-2018Tax Information

The IRS proposed legislation on Thursday, August 23, 2018 that would possibly eliminate your ability to use State Tax credits as an Itemized Deduction on your Federal income tax return. If you believe this legislation will become law, here are some quick considerations for you to make by Monday, August 27, 2018. (Yes, you only got 4 days to act)

In Arizona, this proposed legislation would impact donations for state tax credits to:

  • Qualified Charitable Organizations (formerly Working Poor)
  • Public Schools Activity Fees
  • Student Tuition Organizations
  • Military Family Relief Fund
  • Foster Care

Other states may have programs like Arizona to allow such credits.

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