Arizona Tax Credit for Charity Not Applied

In TT 2020 Deluxe, the charitable tax credit is not being applied.  I have $515 in tax CREDIT, and its  not being applied.  The calculations are wrong.

MayaD
Expert Alumni

State tax filing

AZ tax credit for Charity is a non-refundable credit. non-refundable tax credit is a tax credit that can only reduce your liability to zero. The credit can't be used to increase your tax refund or to create a tax refund

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State tax filing

Thanks for the response MayaD!  Has this changed over the last year?  My refund in prior years was always increased with this credit.

DaveF1006
Expert Alumni

State tax filing

In the past, you may have had more taxable income in the state of Arizona that produced tax liability. In this case, you were able to use that non-refundable credit to reduce your tax liability to produce a refund. This year, you may had less/ no AZ income and less/no tax liability and not be able to take advantage of the credit.

 

As far as I know, the tax credit for charity has always been a non-refundable credit.

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State tax filing

Thank You, Dave!

State tax filing

Looking a little closer, TT does not let me get to form 321 with the walk through, but I can pull up the form and fill it out and I get the credit.  Not consistent behavior.

State tax filing

I may have missed it the first time around, but I do see checkbox for QCO now.  Thanks all!