Did you know you can make a donation to a qualified charity rather than paying all of your state income taxes in Arizona? It’s true and under this provision, according to the Arizona Department of Revenue, residents can help those in need and it wouldn’t cost them a cent.

The reason? The State of Arizona provides tax credits for residents that opt to contribute to a Qualified Charitable Organization.  What you would have paid in taxes, you can donation to a charity instead. How cool is that? The taxpayer will be eligible to take the money as a direct credit rather when they file their income taxes.

Time is running out though as the donations need to be made by December 31, 2011. To claim the credit the taxpayer need to itemize deductions and report the name of the qualifying charitable organization donated to, and the dollar amount of the donation.

Here are your choices – click the links to find out the eligible organizations:

Public school tax credit, $200 per individual/$400 per couple

Private schools tax credit, $500 per individual/$1,000 per couple

Working Poor organizations, $200 per individual/$400 per couple

Arizona Military Family Relief Fund, $200 per individual/$400 per couple

Don’t forget to save the acknowledgement letters you receive for these donations. You’ll need to give a copy to your CPA to take the credit.

Check with your tax preparer or CPA now if you don’t know how much Arizona income tax you need to pay and whether you should use all the credits. If you do, that would be $1,100 per individual and $2,200 per couple. These donations also qualify for charitable contributions on your federal income tax return.

As always, if you need help with your business or personal recordkeeping, let us know. Our team of highly-skilled accountants is here to help!

 

 

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