topic 2019 Arizona Private School Tuition Tax Credit in State tax filing

2019 Arizona Private School Tuition Tax Credit

favaroj1 — Sat, 08 Feb 2020 16:42:02 GMT

My understanding is that for 2019 for Arizona, the maximum contributions for the 2019 tax year are $1,135 for filing single, or $2,269 for married filing jointly. I'm working on my taxes but the dollar for dollar credit (for married filing joint) is only $1,100. Is there an error with TurboTax?

Re: 2019 Arizona Private School Tuition Tax Credit

JotikaT2 — Sun, 09 Feb 2020 20:32:33 GMT

Probably not.

The amount of the credit for 2019 is actually $569 for single, head of household and married filing separately, and $1,186 for married filing joint.

This credit is a nonrefundable credit, which means it can only be used to offset your actual tax liability. The remainder of the unused credit can be carried forward.

I have attached a link to the Arizona website with information on the credit, as well as the instructions to the form if you would like to see how the carry forward is computed.

AZ tuition credit

Instructions by year for AZ tuition credit

Re: 2019 Arizona Private School Tuition Tax Credit

jgleigh — Fri, 14 Feb 2020 21:30:11 GMT

You are correct and TurboTax isn't calculating it all correctly. It should be putting $1138 on Form 323 and $1131 on Form 348. The problem I'm having is that TurboTax is then deducting $1131 from my Schedule A because it thinks I'm also claiming these deductions on my Federal form. I haven't found a way to override that and get the correct deductions yet.

Re: 2019 Arizona Private School Tuition Tax Credit

jgleigh — Sat, 15 Feb 2020 02:43:12 GMT

You may want to read my other post if you're still having issues. I figured out why I was getting weird calculations.

https://ttlc.intuit.com/community/state-taxes/discussion/2019-arizona-form-348-being-deducted-from-itemized-deductions/00/1152037

Re: 2019 Arizona Private School Tuition Tax Credit

maty93 — Sat, 15 Feb 2020 19:26:00 GMT

Yes, it is doing the same thing to me, it reduced my itemized deductions by about $1000 when I inputted my overflow donation. How do we get this corrected so we can file correctly??

Re: 2019 Arizona Private School Tuition Tax Credit

maty93 — Sat, 15 Feb 2020 20:00:09 GMT

I read your other reply but this did not solve the issue of it changing my total itemized deduction, which raises my AZ taxible income by $1000. That's a lot and is not correct! Is there someone at Turbo Tax who can explain this?

Re: 2019 Arizona Private School Tuition Tax Credit

maty93 — Sat, 15 Feb 2020 20:04:10 GMT

He is correct:

Single original Tax Credit is $569, plus Overflow Tax Credit is $566, Total is $1135

Married is $1138, plus overflow $1131, Total is $2269.

However when inputting the overflow Turbo Tax REDUCES the itemized deductions, RAISING the taxable income which results in high state taxes due. This is not correct, the tax credit should be dollar for dollar.

PLEASE EXPLAIN!

Re: 2019 Arizona Private School Tuition Tax Credit

jgleigh — Wed, 19 Feb 2020 18:20:37 GMT

After the Credit Carryover screen, there should be a screen that asks how much of these credits is deductible on your federal return. Those two boxes should be zero.

Re: 2019 Arizona Private School Tuition Tax Credit

farrahgebbhart — Tue, 12 May 2020 19:33:40 GMT

Has anyone figured out how to correct this?