Can i deduct on my federal return an arizona tax credit for contributions to a private school (form 323)

[kacee100]

i took this credit last year on my state of Arizona taxes and made the contrbution in April 2016.  Can I deduct this on Federal return as a charitable contribution?

[KrisD]

Yes, as long as it is not for enrollment.

"The Internal Revenue Code allows taxpayers to claim a deduction for donations they make to qualified organizations. A qualified organization includes most nonprofit schools that operate exclusively for educational and literary purposes."

Click here for more information about school donations  

[job407]

I don't think this is correct. The IRS issued a new rule last year that said you cannot get both a state tax credit and a federal deduction for a contribution to charitable organization. https://www.irs.gov/newsroom/final-regulations-on-charitable-contributions-and-state-and-local-tax-c...

Unfortunately, I think TurboTax is not accounting for this new guidance and is making a mistake by allowing you to take both the state credit and the federal deduction. This needs to be corrected. I think you can either get the state credit or take the federal deduction but not both. 

[AmyC]

Thank you for sharing @job407 the new guidance.