AZ QCOs and QCFOs

nathantanner

Are Arizona contributions to QCOs and QCFOs allowable in federal itemized deductions?

And along with this, Arizona allows you to make this contributions in the next calendar year for the prior tax year. But could that make it so you can use them as a federal itemized deduction in the calendar year the contribution was made? So a contribution made Jan 2023 for the 2022 AZ tax year could be federally itemized for the 2023 year?

MatthewD

Hi Nathan,

If the QCO and the QFCO are 501c non-profit charitable organization, then yes, those may be deducted for federal purpose. Arizona has a long list of those.

For federal purposes the contribution is included in deductions in the year it was made. The IRS has no provision for prior year, like AZ does. So, it must be in 2023 for the 2023 Form 1040, Schedule A.

If you deduct it as an itemized federal deduction and it rolls over to the AZ itemized deduction, then don't add it again on the AZ return for the subtraction.