- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
No, there are no known issues with your scenario.
However, it's possible that what you're seeing isn't a "carryover" amount.
A credit carryover typically occurs when a taxpayer is entitled to a credit in a tax year, but the credit amount is greater than the tax amount; if allowed by law, any unused credit amount carries over to the next tax year, to apply against that year's taxes.
Arizona has an adjustment for charitable contributions when a taxpayer has taken an Arizona credit for charitable contributions: if a taxpayer has claimed a credit in Year 1 for a contribution made in Year 2, an adjustment must be made on the Year 2 return, even though the credit was claimed on Year 1 return.
According to Line 6 - Adjustments to Charitable Contributions in the Form 140 Schedule A Itemized Deduction Adjustments:
If you claimed a credit on your 2021 return for a contribution that you made during 2022 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2022 return, even though you claimed the credit on your 2021 return.
This may be what you're seeing.