Arizona Form 321

[cortneyfulk]

On Arizona Form 321, part 2 lists tax credits taken the past 5 years, and the amount used.  Previously I was married, filed a joint return, and utilized the maximum credit allowed of $800.  Turbo Tax pulls this credit from all previous years returns.  In 2020 my spouse passed, and in 2021 I utilized the maximum credit of $400 on my return.  When Turbo Tax runs the error check for my return, it wants me to change all previous credits to $400, and gives me an error for all preceding years stating $400 is my maximum credit.  It is still doing this for my 2022 return.

[DMarkM1]

Please clarify.  Is there any unused carryover credit from the joint filing years? 

[cortneyfulk]

There was a carry over from 2020 that was utilized on the 2021 return.

[DMarkM1]

In that case it appears there would be zero credit from prior years that is available for you in 2022 as it was all used.   In the AZ interview click through to the page titled "Donations to Charitable Organizations"  

If you do not check the box "I claimed credit in 2021 that was carried forward to 2022" then the carryforward information should be ignored. 

If the error still doesn't clear you can check the box "I claimed credit in 2021 that was carried forward to 2022" and the next page will bring up the table that you can change/delete all the numbers since there is no carryover credit available.  

Then go back and "Uncheck the box" as well just to be sure the carryover information is gone.    

[cortneyfulk]

The issue does not have any thing to do with the carry over amount.  And I will add that Turbo Tax correctly fills the form in properly, which at least allows paper filing the return.  The mount of the credit allowed for previous years, ie., 2017-2020 must now equal to my current filing status which is single, thus only $400 is allowed.  When I filed in 2017-2020, I was married and could utilize the full $800 amount.  Turbo Tax, in their error check, wants me to change the 2017-2020 credit amount allowed to $400, which is not correct.  There was no carry over in any years except the year 2020 return, and TT properly carried the credit forward and filled the form out correctly, but gave me the same error for all previous filing years.

There has to be a bug in the error check program that only allows a credit equal to my most current years filing status, single thus only a $400 credit is allowed for this year and all previous  years.

[cortneyfulk]

To be more specific, I get a message before the table stating: In column b below do not enter more than the 2021 credit limit of $400.

As i stated before, all columns a-d are filled in automatically by TT.  My table appears as follows:

Column a              Column b         Column c      Column d

  2017                         800                    800                   0

  2018

[DMarkM1]

Yes, however the error is related to data that does not apply to your tax return. Since there is correctly calculated no carryover credit from 2021 you would not check that radial button in the AZ interview.  The past year's data will correctly not be in your AZ returns.  The error should disappear and your return can be e-filed.   

[cortneyfulk]

Thanks DMarkM1!!!