Arizona individual taxpayers can direct their state income tax dollars to a variety of Arizona charities through the use of Arizona tax credit contributions. Taxpayers do not need to itemize to claim the Arizona tax credits. A couple filing a joint return in Arizona can qualify for as much as $4,777 of tax credits for 2017.
Contributions to certain charities or public schools will also qualify for a federal charitable contribution deduction. However, you have to itemize your deductions on your federal return to take advantage of this. Check here for Tax Services in Northern Arizona
You can actually make money by donating to a Qualifying Charitable Organization (a charity that qualifies for both the Arizona tax credit and federal charitable deduction) or public school. Say you donate $100 to a Qualifying Charitable Organization; you will receive a dollar-for-dollar Arizona tax credit worth $100 plus a charitable itemized deduction on your federal return worth between $10 to $39 depending on your federal tax bracket. If you’re in the highest federal tax bracket then you will receive $139 of tax benefits in return for your $100 contribution.
A taxpayer can contribute and take all the credits, subject to the amount of state tax for any particular year. The credits are non-refundable. Unused amounts of credit carry forward for five years, except for the military credit, which does not carry forward.
Contribution to Qualifying Charitable Organizations
Charity must be on this list:
Single, Head of Household, or Married Filing Separate $400, Married Filing Joint $800
Can make contribution up to April filing deadline for prior year credit
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