Additional Standard Deduction for Charitable Contributions asks to input Contributions for Which You are Claiming an Arizona Credit. I enter the amount and still do not see that amount reflected in my AZ refund amount. Is there an option I didn't complete or a place I missed to input this info? I have to take the Standard Deduction - no worries. I've done that for many years, but last year there was a section where the AZ credits could be entered and I saw the AZ Refund amount increase by that amount. I have searched for hours and I'm getting frustrated. Why is the process different this year?
Open your AZ and continue to the screen Additional Standard Deduction for Charitable Contributions. Enter the amount and continue to the following screen to see the amount of refund after the deduction.
For taxpayers who do not itemized deductions on their 2024 Arizona income tax return and elect to take the standard deduction, the allowable Standard Deduction Increase was modified. For tax year 2024, the allowable portion of your charitable contributions used to compute your Standard Deduction Increase was increased from 31% to 33% of the qualified charitable contributions made during the tax year.
So, in AZ, there is no longer a dollar for dollar tax credit when you donate to those qualifying charities? For example, last year I donated $800 for the qualifying charities and basically got $800 back in an AZ refund. Are you saying that is no longer happening?
Assuming you are referring to the special credits Arizona allows, such as for a contribution to a qualified charitable organization (QCO) on the Arizona (AZ) return, follow the steps below.
Be sure that your contributions entered here are not duplicated on your itemized deductions. See here for more information from the State of Arizona regarding the tax credits.
The credits and carryovers are addressed in the Arizona interview. When you complete the 2024 Arizona interview in TurboTax, review each screen and answer the questions that apply to you. When you get to the screen asking about Other Nonrefundable Credits (see screenshots below), check the box next to "Contributions to qualified charities". On the follow-up screen, check the box indicating that you have a carryover from 2023 if that applies.
If you have a carryover from 2023, look for this screen:
If you made the entries but don't see the credit on your return, check to see whether you had Arizona tax on the return against which you could apply the credit. If not, you may be able to carry it over to 2025.