NOW, NOW, NOW

Topic:    AZ Tax Credits

To do:  Make these payments by Monday, August 27.  If made on 28th or later, you still get the AZ credit but not the deduction on the Federal return.

So: NOW is the time to write the check and send to qualifying charity.  Send via certified mail to charity no later than Monday.  You must be able to PROVE you made the contribution by that date.

Click here for more detail or call me with questions.

AZ Tax Credits

You can profit from making charitable contributions.  Make charitable contributions to reduce your State of Arizona tax liability dollar-for-dollar while claiming a deduction on your Federal income tax return as well.   Here’s how:

Credit for Contribution to Qualifying Charitable Organizations

Contribute to a Qualifying Charitable Organization that provides assistance to the working poor – up to $200 for single taxpayers or $400 for married filing joint.  For a list of Qualifying Charitable Organizations for the 2014 calendar year click here. Taxpayers may contribute an additional $200/$400 to a Qualifying Foster Care Charitable. Please be aware that the entire credit is limited to $400/$800. You may give up to $200/$400 to a Qualifying Charitable Organization and $200/$400 to a Qualifying Foster Care Charitable Organization OR you may give the entire $400/$800 to a Qualifying Foster Care Charitable Organization. For a list of Qualifying Foster Care Charitable Organizations for the 2014 calendar year click here. 

Public Schools

Make cash contributions or pay fees to a public or charter school for support of extracurricular activities or character education programs – up to $200 for single taxpayers or $400 for married filing joint.  To obtain a Department of Education sponsored listing of the public and charter schools within Arizona click here.

School Tuition Organization

Make a donation to a School Tuition Organization for scholarships to private schools – up to $528 for single taxpayers or $1,056 for married filing joint.  Claim an additional credit for making a donation to a School Tuition Organization if the amount contributed is greater than the maximum amount that can be claimed – up to $525 for single taxpayers or $1,050 for married filing joint. Unused amounts may be used in a future year.  For a list of School Tuition Organizations certified to receive donations for the individual income tax credit click here.

For example, give away $2,000 and end up with and end up with $2,700 if you get the full AZ credit and you pay federal taxes at the thirty-five percent rate.