If we make charitable donations in 2018 that qualify for 2017 Arizona income tax credits, how/when are these entered in our Federal return?

[J-Marks]

In April 2018, we donated:

$800 to Habitat for Humanity, a qualifying charity for the Working Poor Tax Credit (AZ Form 321)

$2177 to AZ Tuition Connections, a qualifying charity for the Private School Tax Credit program (AZ form 323 with $1092 to Original Tax Credit & AZ form 348 with $1085 to the Switcher tax credit.

Both allow for donations made between 1/1/18 & 4/17/18 to be claimed for 2017. We are married and filing jointly. How is this handled in TurboTax? In 2017, we enter AZ only donations and in 2018, we add them to Federal? I want to ensure there is not double-counting but we get credit where we can.

[KittyM · Accepted solution]

The charitable donation that you make in 2018 that qualifies for a 2017 tax credit in Arizona will be deductible as a Schedule A itemized deduction on your 2018 Federal return.

[Shannon-J]

Ok, but Arizona doesn't allow this tax credit as an itemized amount for state purposes (you can't claim both an itemized deduction and tax credit for the same donation in AZ). Typically, when the donation occurs within the tax year, Turbo Tax asks if it has been itemized on Schedule A and then adjusts the allowable itemized amount on the AZ forms. There aren't any questions, however, handling donations made outside of the tax year. Should we just adjust the amounts manually?

[Ak5234]

I am having a similar issue.  How to adjust the amounts manually for Arizona?