With the holidays now upon us, remember as you give to others don’t forget you can give to yourself at the same time!
Many of your Arizona charities donations could equal a dollar-for-dollar Arizona tax credit, meaning it is of no additional cost to you to make these donations. But hurry! Although you can donate until April 15, 2017 to receive a tax credit on your 2016 Arizona tax return, donations must be donated by December 31, 2016 to be deductible on your 2016 federal tax return.
These tax credits are available to individuals who make charitable contributions to certain organizations and schools. Each of these tax credits provides a dollar-for-dollar reduction of your Arizona tax liability (up to your tax liability, subject to limitations). These tax credits effectively redistribute your Arizona taxes from the Arizona Department of Revenue to the charities of your choice.
If you have questions on how these tax credits can be utilized to their maximum potential, please reach out to us to discuss.
Contributions to Qualifying Charitable Organizations (previously called the Working Poor tax credit)
The maximum amount of the credit for 2016 is $800 for married couples ($400 if single).
Contributions to Qualifying Foster Care Charitable Organizations
An additional credit, over and above the QCO credit described above, is available for contributions made to Qualifying Foster Care Charitable Organizations (QFCO).
The additional available credit amount for 2016 is $1,000 for married couples ($500 if single).
For recommendations or suggestions on charities to donate to, please see our website www.aataxcpa.com
Contributions to Public Schools
Arizona provides a credit for contributions made to a public school, regardless of whether you have a child in school. This credit allows taxpayers to make donations in the following year (until April 15th, 2017) to claim a credit against 2016 Arizona tax.
The maximum amount of the credit is $400 for married couples ($200 if single).
The Arizona Department of Education keeps a listing of all public and charter schools in Arizona. You can search for a school by name or by location on their website, http://ade.az.gov/edd/
Contributions to School Tuition Organizations
In addition to public schools, Arizona also provides a credit for contributions made to a Private School Tuition Organization (STO) AND a Certified School Tuition Organization. This credit also allows taxpayers to make donations in the following year (until April 15th, 2017) for a credit against 2016 Arizona tax.
The maximum amount of these credits is $2,173 for married couples ($1,087 if single).
A current list of School Tuition Organizations can be found online at:
https://www.azdor.gov/Portals/0/RefundCredits/sto_i_list.pdf
Please call our office today if you would like any further information or clarification.
Thank you for supporting Arizona Charities!