IRS Proposed Regulations May Affect Your 2018 Taxes

Your State dollar-for-dollar tax credit contribution may need to be made by Monday, August 27, 2018 if you are planning utilizing it for a 2018 Federal deduction

Yesterday, August 23rd, the IRS issued proposed regulations that could affect your ability to utilize your state dollar-for-dollar tax credit as a federal deduction if you itemize.  This is a proposed regulation at this time.  It states only tax credit contributions made after August 27, 2018 will be affected by this proposal if it is approved.  IBE is sending this information out to alert Arizona taxpayers so they can make informed decisions regarding their tax credits.  This in no way affects your ability to receive an Arizona state tax credit. 

Arizona has five different tax credit opportunities:

·         Public School

·         Private School

·         Military Family Relief Fund

·         Qualifying Foster Care Charitable Organizations

·         Qualifying Charitable Organizations

Here is a link to the Arizona Department of Revenue’s information regarding tax credits:

https://azdor.gov/tax-credits

Please keep in mind that these are only proposed regulations and are not final.  Our concern is if made final, the date of August 27, 2018 will already be passed and Arizona taxpayers will no longer be able to claim their tax credit as a federal deduction. 

Consult your tax advisor to determine if this proposed regulation will affect you.

Unprecedented $145 Million Submitted in Corporate Applications

Now that the dust has settled on the Corporate Donation Application period, we're able to look back at the magnitude of what happened. Over $145 million was submitted in almost 1500 applications between the Low-Income Corporate and the Disabled/Displaced programs. This amounts to over $50 million dollars over the cap available for this year! Applications up to the cap ($94 million total) were approved and the rest were wait listed. At this time, the AZDOR has approved some of the wait listed applications and we are expecting more to be approved. If you did not get your application in before the July 2nd cap opening, you can still submit your application to be added to the wait list. There is still a chance that additional applications will be approved as the AZDOR receives notifications of corporate donations. If you would like to get a jump start on next year's cap, feel free to submit your application now to be held for next year. If you have any questions, please contact the Corporate Program Coordinator, Wendi Hauser at wendi@ibescholarships.org.