Arizona Tax Credits

Arizona tax credits help support many different types of organizations in Arizona.  There are many, many different types of organizations that you can donate to in order to make sure you taking control of your tax dollars!  In order to receive the dollar for dollar reduction of tax on your return you MUST provide us with a receipt for these donations!

Public School Tax Credit (also known as ECA contributions):  You can donate up to a $400 for married filing joint ($200 for single taxpayers) to a public school for extracurricular activities.  You can give the money to the school to use in the General Funds or you can donate the money to a particiular sport, organization, club, field trip, or other extracurricular activities.  Ask your friends, family or your own children where to donate the money!  If you need help ask any of the ladies here at CD Tax because we are always being told of client’s children who are looking for help raising money for extracurricular activities!  IF YOU HAVE KIDS GOING TO SCHOOL THIS IS THE EASIEST AZ TAX CREDIT TO USE.  IF YOU PAY THE SCHOOL FOR SOMETHING ASK THEM, “HOW DO I PAY THIS AND GET CREDIT FOR ECA?” 

Contributions to Qualifying Charitable Organizations:

  1. Qualifying Charitable Organizations:  You can donate up to a $800 for married filing joint ($400 for single taxpayers)  to an organization that provides assistance to the working poor.  For charities to qualify they must offer services like cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state.  You can Click Here for a list of Qualifying Charitable Organizers for 2015.  Some of the most popular are Sunshine Acres, Phoenix Rescue Mission, Woman’s Hope Center, Flight 33, Shoebox Ministry, Arizona Childrens Association, but their are hundreds more!
  2. Foster Care Charitable Organizations:  Starting in 2013, You can donate up to $1,000 for married filing joint ($500 for single taxpayers) to an qualified foster care chariable organizations.  These charities must not only meet the requirements to be a qualified charity but they also must provide ongoing services to at least 200 foster children in Arizona and spend at least 50% of its budget on ongoing services to foster children in Arizona.  You can Click Here for the list of Qualfifying Foster Care Charities for 2015.

Arizona Military Family Relief FundFULLED PAID FOR 2016 – NO MORE DONATIONS!!!  You can make up to a $400 for married filing joint ($200 for single taxpayers)  contribution to the Arizona Military Family Relief Fund.  You can Click Here for the form you need to fill out and mailed to: Military Family Relief Fund, c/o Arizona Department of Veterans’ Services, 3839 N 3rd St, Ste 209, Phoenix, AZ 85012.  The Arizona Military Family Relief Fund is administered by the Arizona Department of Veterans’ Services so support will go to Arizona military families in need.  The Arizona Military Family Relief Fund was established by the Arizona Legislature in 2007 to provide financial assistance to the families of currently deployed Service Members and post-9/11 Military and Veteran families for hardships caused by the Service Member’s deployment to a combat zone.  In the worst scenario, when military families lose a loved one in the line of duty, they are frequently faced with devastating financial hardship. Unforeseen expenses add to the stress of tremendous loss. Families suddenly have to restructure their lives and manage day-to-day bills, all while laying their hero to rest.  The Arizona Military Family Relief Fund is here to help.  Per law this credit is capped at $1 million dollars per year.  You will receive a letter from MFRF and we must get this letter to determine that your donation qualified for the AZ Tax Credit for 2015.  I would not delay making this donation…you might make your donation after they reach their cap!  Get your donations in soon!  You can follow them on Facebook to keep up to date with their news and current year donations!

School Tuition Organizations:  You can donate up to a $2,173 for married filing joint ($1,087 for single taxpayers) to organizations like Top of Kids, Arizona Christian School Tuition Organization,Catholic Tuition Support Organization, or Pappas Kids School for low income or homeless kids.  There are many different types of tution organizations or schools to donate to!  These programs take all private school contributions and divide it up into scholarships for kids.  Ask your friends and coworkers if they have children that attend a private school, you maybe able to help someone close to you who struggles with the tuition requirements.  You can also reach out to any of the ladies at CD Tax because we might be able to give you some names of kids we know who attend a private school!  Remember this is taking control of your tax dollars!  Donate them to a child or pay the amount in Arizona tax!  From Tops for Kids: Many students are at a private school because of the sacrifices their parents have made. But sometimes that isn’t enough; sometimes outside help is needed to keep kids in a private school. What a difference it makes for a child to be enrolled in a quality private school that meets their specific needs and is not a “cookie cutter” institution.  Note: You can make contributions that count on your AZ return as a 2015 contribution from 1/1/2016-4/15/2016.  You can use this particular AZ Tax Credit to reduce your Arizona tax liability to zero!  Although this is a charitable contribution also, any donations made during the tax season will not count on your Schedule A as a charitable contribution until you file your 2016 federal tax return.  Again, clear as muddy water, right?  Our software will remember for you and we will verify with you in the next tax year!

Donating the maximum on all of these would total $4,773 for married filing joint ($2,187 for single taxpayers) in dollar-for-dollar reduction of tax on your Arizona Tax Return as well as a cash contribution for your Schedule A, Itemized Deductions.  No matter how you look at this to reduce your tax in Arizona dollar-for-dollar just by making these contributions truly gives you power!  Please remember that you DO NOT have to donate the full amounts for these organizations.

The fine print:  You must have a tax liability on your Arizona return to qualify for the reduction of any tax.  Any excess contributions can be rolled over for up to 5 years.  I would love to help you figure out how much you should be donating annually to reduce your tax liability in AZ!  Our tax planning services start at $75 and are well worth their weight in gold!  I am here if you need any help taking care of these contributions.