Charitable Contribution Credit Amounts Increased
The amounts that may be claimed as Arizona personal income tax credits for voluntary cash contributions to qualifying charitable organizations and qualifying foster care charitable organizations are increased, applicable to taxable years beginning after December 31, 2015. The credit cap for contributions to qualifying charitable organizations is increased from $200 to $400 for individuals and from $400 to $800 for married couples. The credit cap for contributions to qualifying foster care charitable organizations is increased from $400 to $500 for individuals and from $800 to $1000 for married couples. A taxpayer may receive separate tax credits for voluntary cash contributions to a qualifying charitable organization and to a qualifying foster care charitable organization during the same taxable year.
Arizona House Approves IRC Conformity Date Update and Partnership Return Changes
The Arizona House of Representatives has approved a bill that would update the state’s conformity to the Internal Revenue Code (IRC) for corporate and personal income tax purposes for taxable years beginning after 2015. The Senate also approved the bill. References to the IRC would be updated to mean the IRC as in effect on January 1, 2016, including those provisions that became effective during 2015, with the specific adoption of all federal retroactive effective dates. The bill would clarify some of the federal provisions that are effective for prior taxable years.
For taxpayers that qualify for the federal exclusion from gross income for civil damages, restitution, or other monetary award for wrongful incarceration, the bill would specify a deadline for filing an amended state return claiming a refund due to the exclusion and a deadline for the Department of Revenue to review the amended return. The bill would also change the partnership return filing due date from the 15th day of the fourth month following the close of the tax year to the 15th day of the third month following the close of the tax year.
In addition, the bill would specify reporting and payment requirements for when a partnership is audited by the Internal Revenue Service and is assessed an imputed underpayment pursuant to IRC §6225, or when a partnership makes the election under IRC §6226 with respect to an imputed underpayment. (As passed by the Arizona House of Representatives on May 7, 2016).
If you have any questions, don’t hesitate to call us at the office, 314-993-4285.
*This information was received from CCH Federal Tax Weekly.*