Arizona prior year tax credit exclusion from current year Federal charitable contributions - How to handle in TurboTax?

[Taxpayer93]

I made an $800 maximum contribution to a Qualifying Charitable Organization between 1/1/19 and 4/15/19 and applied the credit to my 2018 AZ return.  I made another $800 maximum contribution to a Qualifying Charitable Organization later in 2019 and applied the credit to my 2019 AZ return.

Both amounts are included in 2019 Federal charitable deductions, and must be adjusted to be excluded from 2019 AZ charitable deductions since they were applied instead as AZ credits ($800 in 2018 and $800 in 2019).

Exclusion of the $800 2019 credit works fine in the program; however, step-by-step does not address how to exclude the $800 2018 credit amount from 2019's charitable contributions.

The only place I can find to do that is to override Part 3 of Schedule 321 by manually adding another $800 (2018's) to the question 'Amount of this contribution claimed as an itemized deduction on Federal Schedule A,' for a total of $1,600.  The tax calculations appear to work correctly when I do this but I receive a TurboTax error message that the current-year charitable contribution exclusion can't be larger than the 2019 credit.

I shouldn't have to override the program.  I do not want to file with an error, and I'm not confident the override I made is treated correctly by the program.

How should I make this necessary adjustment in TurboTax?

[BillM223]

"I made an $800 maximum contribution to a Qualifying Charitable Organization between 1/1/19 and 4/15/19 and applied the credit to my 2018 AZ return. "

The State of Arizona says that this contribution that was made in early 2019 for 2018 is considered to have been made on the last day of that taxable year.

For this reason, the credit needs to be applied to the 2018 tax return. You cannot take it in 2019 if you have already reached the $800 maximum.

You will need to amend your 2018 tax return to claim that credit. 

To learn more information on how to amend your return, please see this TurboTax FAQ.

[Taxpayer93]

Thanks for your response but you did not answer my question.

As I stated in my post the $800 2018 credit was taken on my 2018 return as originally filed. 
This $800 is also a charitable contribution on my 2019 Federal return as it was made in 2019. 
The question is, how in TurboTax do I reduce 2019’s Federal charitable contributions for inclusion as deductions on my AZ return?  AZ requires this, but, as described in my original post, TurboTax does not accommodate it. 

[AmyC]

You are not allowed to take the federal deduction based on new federal ruling. Please remove the deduction from your federal return. See IRS newsroom

[Edited 03091/20 | 1:39pm PST]

[Taxpayer93]

Thanks

[Taxpayer93]

AmyC, I’m reading the IRS notice now and stand corrected. 
Thanks

[moffeejw]

I was following the thread of an original post regarding the amount you can take in credit for Arizona public schools or foster care organizations, and how it is handled on the federal.  Hers was between the years 2017 and 2018, my question will be talking about all in one year 2018.

In 2018 I took a federal deduction for a contribution I made to my grandkids school for $200 and another for the Casa De Los Ninos which is under the Foster Care credits in AZ.  So that federal deduction is then deducted from the AZ Schedule A deductions on the AZ 140 state return.  The two payments are then available credits for the AZ income tax.  In my case some was carried over, and not all was used in 2018.

You referenced the IR-2019-109 and I see that it did not go into affect until 8/12/2019, but the fifth paragraph down deals with state tax credits which are dollar for dollar which our state of AZ does.   I took the $200 and $500 charitable contributions on my federal that year, and also claimed the $200 and $500 as a tax credit.  I also can see on my return that the reconciliation of the itemized deductions of the federal to the state itemized reduces the itemized deductions by $700.  And then the credits are applied.  I did not get the whole $700 that year, it carried forward.  

In the paragraph talking about the state dollar for dollar tax credits it gives a limitation of $150 credit.  I don't understand that as it is referencing dollar for dollar credits of $1000 (their example) and that you do not have to reduce the federal if the state tax credit received or expected is no more than $150 (15%). 

Amy advised her to take the deduction off of her federal return and you agreed after reading the IRS form.  I know this was 2018 and maybe did not apply until 2019, but I would like to understand it as I am helping my Dad do his in turbo tax this year.  Thank you for any help you might be!