The IRS recently published a regulation titled "Contribution in Exchange for State or Local Tax Credits" that requires fed. charitable deductions be reduced by value of any state tax credit received. This is enforced for donations made after Aug. 28 2018.
I donated stock worth $4787 on Dec 26, 2018 to a community foundation and qualified for a 25% state tax credit ($1196.72) for tax year 2019, through Endow Iowa Tax Credit Program.
I applied for an extension of time with form 4868 while waiting for this ruling and now need to finish filing my 1040. How do I now reduce fed. deductions by value of state tax credits I received when Turbo Tax asks for only "value of stock on date of donation"?
