Luckily, there isn’t another brand-new tax law this year to worry about. However, one of the most important changes from 2018 to keep in mind for 2019 is that in most circumstances, you can no longer receive a federal tax deduction for donations that qualify for the Arizona Tax credit.
The one exception: If your total tax deductions (state and local taxes, real estate taxes, etc.) on Schedule A are below the $10,000 limit. If this is the case, you can take the qualifying Arizona tax credit as a tax deduction up to the $10,000 SALT limit, in effect changing a charitable tax donation to a state income tax donation.
There are some changes to the Arizona tax credit amounts for 2019. Listed below are the credits available and their limits for the 2019 tax year.
Credit for Contributions to Private School Tuition Organizations
Single taxpayers: $569
Married filing joint: $1,138
Credit for Contributions to Certified School Tuition Organizations (Plus/Switcher Credit)
Single taxpayers: $566
Married filing joint: $1,131
Credit for Contributions Made or Fees Paid to Public Schools
Single taxpayers: $200
Married filing joint: $400
Credit for Contributions to a Qualified Foster Care Organization (QFCO)
Single taxpayers: $500
Married filing joint: $1,000
Credit for Contributions to a Qualifying Charitable Organization (QCO)
Single taxpayers: $400
Married filing joint: $800
When donating to a QFCO or QCO, you have to include the five-digit code assigned to the organization by the Arizona Department of Revenue in your tax return. You can access a list of codes and details about these credits here.
KC Kolb, CPA