Potential Changes that Could Affect Your 2018 Taxes

Posted: August 24, 2018

Yesterday, August 23, 2018, the U.S. Department of the Treasury and Internal Revenue Service suggested new rules that would regulate the opportunity for federal charitable contribution deductions in cases where the individual plans to get a state or local tax credit. Nothing has changed yet, but we want you to have all information available when making decisions about your upcoming tax-credit giving. You can read the IRS News Release here.

If the proposed amendment passes (again, it is not law yet), tax-credit donations made after August 27, 2018, will not be eligible for both the federal deduction and state tax credit, as they have been in the past.

The regulation will NOT affect you if your total state & local tax deductions do not exceed $10,000. This includes deductions for state income taxes, real estate taxes and personal property tax (e.g., AZ vehicle registrations).

It is not clear when the proposed regulation would be made final, but if approved, it will be retroactive to August 28, 2018.

We will do our best to keep you informed, and we encourage you to consult your tax professional for further information regarding your individual scenario.

No matter the result, this does not change your ability to take the donation as an Arizona tax credit. Donations made after August 27th can still be done in lieu of paying state income tax. This is simply a change to how it is reported on the federal tax return.

Thank you, as always, for your support of what we do.

Share this post

Contact us

6909 E Greenway Parkway #240
Scottsdale, AZ, 85254

480 699 8911

480 646 3196


Want to receive occasional emails from us? Join the list.

Request Brochures!


A school tuition organization cannot award, restrict or reserve scholarships solely on the basis of a donor's recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer's own dependent.

Send Us A Message

Please prove you are human by selecting the Tree .


Copyright © 2021 Arizona Private Education Scholarship Fund, Inc. All rights reserved.