With year-end approaching it is time to be looking at tax moves that can be taken to put you in a better position. This is a reminder of the tax credits available for charitable contributions to
certain causes (available to those indviduals that file and pay Arizona income taxes).
Arizona tax credits are
available to reduce your tax liability, but are not refundable. Unused contribution
credits roll forward to future years. A taxpayer who makes $1,800 of eligible
contributions but has only a $400 liability will reduce their liability to $0
and have $1,200 available for future years. You
will find your 2011 State of Arizona tax liability on Form 140 Line 24. If you
have any questions, please contact the office.
Working Poor Tax Credit - $200/$400
The Working Poor Credit contributions
are reserved for charitable organizations that spend at least 50% of their
budget on services to Arizona residents who received Temporary Assistance for
Needy Families (TANF), households living below a certain income level, or
households containing chronically ill or physically disabled children.
School Tuition Organization - $503/$2,006
The STO credit
changed in the past year. It is now automatically indexed for inflation and
there is a new additional tax credit available, increasing the total amount
available. The purpose of the credit is to allow students attending
underperforming schools to attend private schools based on merit or need,
however there is no limitation on who may accept scholarships. Additionally,
the contribution can now be made up to the April 15 tax deadline.
Credit for Contributions Made or Fees Paid to a Public School - $200/$400 Single/Married
Any public or
Credit amount benefit
the school's general activity fund or designated extracurricular programs such
as music, sports, arts, and civic activities. This is a great opportunity for
individuals to provide funding for programs they are passionate about or
participated in during their high school careers. This is also a chance to support an under-served school that might not otherwise get funding.
Arizona Military Family
Relief Fund - $200/$400 Single/Married
Contributions to this fund assist military families
during the loss of a loved one, unforeseen financial hardships, or
rehabilitation stints. This fund, an incredibly worthy cause, is capped at $1
million dollars of contributions annually. I urge you to CONTRIBUTE AS SOON AS
POSSIBLE. As of December 4, 2012, the fund has received $649,570.73. If
your contribution is received subsequent to the fund's cap, your contribution
will be returned and the credit will not be available.
If you have any questions about how the tax
credits are applicable to your tax return, please contact the office.