This credit is established to provide support to families of currently deployed military service members and post-9/11 veterans and their families. I have read some of the grants provided include providing assistance for families to travel to visit hospitalized service members when the military was unable to provide travel for the entire family.
This credit is capped to $1,000,000 in donations per year, when the organization receive donations that total that amount they are prohibited from keeping the funds. I generally recommend that taxpayers make this donation around or before Thanksgiving as that tends to be before the annual cap is reached.
Like the other AZ state tax credits, this qualifies for a dollar for dollar reduction in taxes. It may also qualify as a charitable contribution for Federal itemized deductions. This can also be used in conjunction with the other credits up to the liability you have for AZ taxes during the year of the donation.
- To read more information about this credit and the department responsible for collecting donations and providing assistance, click here: DVS 2016 Military Family Relief Fund
- To download the donation form to accompany your check or money order, visit the website here: MFRF 2016 Donation Form
In the coming weeks I will provide more information on other AZ tax credits and changes for 2016.