How do I calculate my Arizona credit carryover for each year?
You should only enter carryover amounts for a year if you claimed the credit in that year and any part of the credit wasn't applied to tax due in the year it was claimed or to tax due in a later year.
For example, Mary had $1,200 of qualifying donations or expenses in 2022, but the credit was limited to $1,000 in the 2022 taxable year, so Mary's Original Credit Amount for 2022 is $1,000. Mary had a tax due of $250 for Arizona in 2022, so she only used $250 of the $1,000 credit in 2022. She then used $300 of her carryover amount on her 2023 Arizona return, and used none on her 2024 Arizona return. Mary would enter $1,000 in the Original Credit Amount column and $550 in the Amount Previously Used column for 2022.
Mary would only enter amounts for 2023 or 2024 if she claimed an additional credit in that year which hasn't already been fully used to offset tax due in years previous to 2025.
Please be aware that the amounts used in this example may not reflect the actual maximums or amounts allowed in any certain year and are only provided as an example of how to calculate the correct amounts to enter.
NOTE: You may claim a carryover only for the portion of the credit that you didn't apply to tax. You can't claim a carryover for any amount you gave that was more than the maximum amount allowed as a credit in that year. Referring to the example above where Mary had $1,200 of qualifying donations or expenses in 2022, Mary can't claim any credit in any year for the $200 portion that was more than the allowable credit of $1,000.
For example, Mary had $1,200 of qualifying donations or expenses in 2022, but the credit was limited to $1,000 in the 2022 taxable year, so Mary's Original Credit Amount for 2022 is $1,000. Mary had a tax due of $250 for Arizona in 2022, so she only used $250 of the $1,000 credit in 2022. She then used $300 of her carryover amount on her 2023 Arizona return, and used none on her 2024 Arizona return. Mary would enter $1,000 in the Original Credit Amount column and $550 in the Amount Previously Used column for 2022.
Mary would only enter amounts for 2023 or 2024 if she claimed an additional credit in that year which hasn't already been fully used to offset tax due in years previous to 2025.
Please be aware that the amounts used in this example may not reflect the actual maximums or amounts allowed in any certain year and are only provided as an example of how to calculate the correct amounts to enter.
NOTE: You may claim a carryover only for the portion of the credit that you didn't apply to tax. You can't claim a carryover for any amount you gave that was more than the maximum amount allowed as a credit in that year. Referring to the example above where Mary had $1,200 of qualifying donations or expenses in 2022, Mary can't claim any credit in any year for the $200 portion that was more than the allowable credit of $1,000.
