What a great state we live in! Arizona is one of the few states that provides tax credits that lets YOU as a taxpayer to redirect your tax dollars to the charitable organizations of YOUR choice. So, when you are paying your quarterly taxes or meeting with your accountant, you can mail your payments directly to the non-profit and claim the tax credit when filing. If you have an Arizona tax liability large enough to absorb the tax credits, married couples and single/heads of household taxpayers are eligible for up to $4,773.00 and $2,387.00 in 2017 Arizona tax credits respectively. This is an incredible gift to non-profits throughout our State and truly makes a difference in the lives of the financially disadvantaged, children and military in our great state. The following credits are available for 2017.
Qualifying Charitable Organization (Previously known as the Working Poor Tax Credit):
- The YWCA qualifies for this credit:
Single/Head of Household cap, $400 and Married Filing Jointly cap, $800 – Due Date 4/15/19
- Foster Care Charitable Organization:
Single Head of Household cap, $500 and Married Filing Jointly cap, $1,000 – Due Date 4/15/19
- Public/Charter School Tax Credit:
Single/Head of Household cap, $200 and Married Filing Jointly cap, $400 – Due Date is 4/15/19
- Private School Tuition Tax Credit:
Single Head of Household cap, $1087 (forms 323 – $545 and 348 – $542) and Married Filing Jointly, $2,173 (forms 323 – $1090 and 348 – $1083) – Due Date 4/15/19
- Military Family Relief Fund Tax Credit:
Single Head of Household cap, $200 and Married Filing Jointly cap, $400 – Due Date 12/31/2017 – Due date has passed but keep in mind for 2019.
Should you have questions on this or how much you should give to offset your anticipated 2017 Arizona tax, please contact your tax professional.
*Note: The Military Family Relief Fund tax credit is subject to a donation limit of $1M in aggregate per year, meaning once $1M has been donated for the year, the credit is no longer available.
Visit: https://www.azdor.gov/TaxCredits.aspx to learn more about qualifying organizations and specifics on each tax credit.