Arizona State law allows those who pay state taxes to redirect up to $400 ($800 for jointly filing couples) to qualifying charitable organizations, like The Welcome to America Project. Any amount that is given is then deducted, dollar for dollar, from the total amount of owed state taxes. So, if you owe $400 in state taxes, and you gave away $400 to qualifying charitable organizations, you will have to pay $0 to the state at tax time. It’s that simple! You can take part of your taxes and spend them directly at organizations you know are doing good work for our community.
Here’s what you need to know:
HOW MUCH CAN I GIVE?
The law allows individuals to give up to $400, and jointly filing couples can give up to $800.
CAN I GIVE TO MORE THAN ONE ORGANIZATION?
Yes. The maximum allowed may be divided amongst multiple qualifying organizations.
DO ALL CHARITABLE ORGANIZATIONS QUALIFY?
No. A full list of qualifying organizations is available at the AZ Department of Revenue website. (https://www.azdor.gov/TaxCredits/QualifyingCharitableOrganizations.aspx)
CAN I USE ALL THE TAX CREDIT PROGRAMS IN THE SAME YEAR?
Yes. If you give to your public or private school, you can also make a tax credit contribution to a charitable organization and a separate one to Foster Care Charitable Organizations, too. Please note that the maximum contributions for each program are different.
HOW DO I CLAIM THE CREDIT?
Complete Department of Revenue Fprm 321. You do not need to itemize deductions to claim this credit. Please consult a tax expert if you have specific questions.
WHEN IS THE DEADLINE?
Beginning in 2016, the deadline for claiming a tax credit is April 15. Credits donated on or before this day may be applied to either the current or preceding taxable year. Many people like to make their contribution by Dec. 31, the end of the fiscal year for accounting purposes.