I was hoping you could also weigh in on the following question...I asked one other expert and they said it would be ok. Im just looking for one more confirmation if you think this scenario of taking a state credit and a federal deduction on a charitable contribution would work....
I live in Arizona and will be itemizing my taxes this year. Single with no dependents, making $60K pre tax. I was going to do the Arizona Private Education Scholarship Fund tax credit. They are qualified as a charitable organization on the IRS site. This year you can give $503 plus an additional $500 as a single taxpayer and get the credit given right back to you if you paid that much or more in taxes. Can I receive this credit from Arizona state and then also take a deduction on the $1003 off my federal taxes. Their website alludes to the possibility of it but I have been reading quite bit on IRS.GOV and see donations as tuition as being an exclusion of using it as a deduction. I am not sure if that is only the case if it is for a specific child or family member. I am not specifying a certain child of who this money would go to, just a donation to the organization in general. If not are there any credits in AZ yo can apply for which you can also deduct off your federal taxes for a charitable contribution.
Since the Arizona Private Education Scholarship Fund is a federally tax exempt 501(c)(3) charitable organization the donation does qualify as a charitable contribution for federal tax purposes.
The IRS site was referring to the situation where tuition is being paid to an organization and a deduction is attempted to be claimed for that tuition payment.
The payment can not be for tuition for you or for a person that you designate or for any other item of value; but that does not seem to be the case as it was described.
Of course, you will have to make an adjustment to reduce the itemized deductions for Arizona by the amount of charitable contributions for which you are taking a credit under Arizona law so both a credit and a deduction are not taken for Arizona tax.
It is possible to take a federal deduction and an Arizona credit for the same contribution.
Please ask if you need clarification.
Thank you for the more detailed answer than I received elsewhere!
You are quite welcome.
If you include a reference to me (such as "for jgordosea") in a future question most of the other experts will leave it until I get to answer. Of course, I am not on all of the time so you can always let another expert answer if you need an answer quickly.
Thank you for the opportunity to be of service.