If you are an Arizona resident, you may want to take advantage of the following Arizona tax credits which are a dollar for dollar reduction in Arizona tax. Among the numerous credits available to Arizona residents are:
1. Credit for Contributions to Private School Tuition Organizations ($517 Single/$1,034 Joint)
2. “Switcher” Credit to Certified School Tuition Organizations ($514 Single/$1,028 Joint)
The “Switcher” credit is only available if you have first done the Private School Tuition Organization credit. The combined credits are $1,031 Single / $2,062 Joint.
3. Credit for Contributions Made or Fees Paid to Public Schools ($200 Single/$400 Joint)
More information can be found at the ADOR website.
4. Credit for Contributions to a Qualifying Charitable Organization (QCO) formerly the Working Poor Credit ($200 Single / $400 Joint)
5. *NEW* Credit for Contributions to a Qualified Foster Care Organization (QFCO) ($400 Single/$800 Joint). Your maximum allowed credit to a QFCO is lowered by any allowable credit paid to a QCO. See below for additional information regarding the limitations.
More information can be found at FAQs regarding Charitable Tax Credits
6. Credit for Donations to the Military Family Relief Fund ($200 Single/$400 Joint)
The Arizona Military Family Relief fund is administered by the Arizona Department of Veterans’ Services so support goes directly to Arizona families in need.
More information can be found at the MFRF website.
In addition to receiving a Federal charitable deduction for the contributions above, you receive a dollar for dollar credit to reduce your Arizona tax liability to zero when you file your return. Most unused credits can be carried forward for up to 5 consecutive taxable years.
Livonia Winkles, EA