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Arizona Tax Credit School: How Does it Work?

by | Feb 4, 2022 | Blog

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After determining the tax liabilities of an individual, which is the gross income tax less the tax deductions and tax withheld by the employer, you have to pay your tax due to the government, which can be done one time or by installments. To lessen the amount here is where tax credits come in, and there are several types to get tax credits. Tax credits are a dollar-by-dollar deduction to your tax. From this, your tax is significantly reduced, and you have contributed directly to the community or neighborhood of your choice. This is a big service to those less fortunate who need help and support from its community.

Tax Credit Types

A taxpayer can gain a tax credit that can reduce tax liabilities, impacting the amount of tax significantly due through different ways. Some of the methods are as follows:

Contributions or Donations to Qualified Charitable Organizations in Arizona (QSOs)

QSOs and QFCOs must be certified at the time that the taxpayer donates to claim a tax credit legally. Qualified charitable organizations can give a $400 max tax credit for an individual filing separately and a max of $800 for a couple filing jointly. A qualifying Foster care Charitable organization donation can give a maximum of $500 for an individual filing individually and a maximum of $1000 for a married couple filing jointly.

Public School Tax Credits

An individual can claim a tax credit for making contributions or payments to a public school in the state for support of legal school activities as defined. The public school tax can be claimed by filing form 322. A taxpayer can claim $200 for filing individually or $400 jointly.

Tax Credits for Contributions to Certified School Tuitions Organization

Arizona provides tax credits to individual taxpayers who contribute to Certified School Tuition Organizations for private schools for its scholarship programs.

 

What are the Best Charitable Organizations and Schools Tuition Organizations in Arizona that you can donate to for a tax credit?

 

best charitable organizations

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Let us identify some of the best charitable organizations and schools that are qualified charitable organizations and certified by the State of Arizona. These best charitable organizations and schools consistently make sure that they are non-profit organizations and schools that follow the guidelines set by the IRS under IRC (c ) (3).

Children’s Care Arizona

It is one of the best charitable organizations in Arizona, established in 2017. The charity foundation uses donations, sponsors, and volunteers to provide child care and support for low-income children. It is a non-profit organization that supports, cares, and supervises children of low-income families attending preschool, public schools, and other schools approved by the DHS. The foundation is categorized as a qualified charitable organization that entitles a taxpayer to a tax credit of $400 filing individually or $800 a married couple filing jointly. Your identity is protected by its privacy policy, refund policy, and information security policy.

Kairos Prison Ministry of Arizona

Kairos Prison Ministry of Arizona is one of the best charitable organizations providing spiritual-moral support for incarcerated men, women, youth, and families. Although the ministry is purely volunteer-run, some expenses are needed for activities such as training and food during the weekdays and weekends. The ministry appreciates each donation provided. They are also considered as a qualified charitable organization in Arizona ( QSOs). Once you decide to lend them help, you will receive a donor letter from the ministry for your tax credit.
Autism Society of Greater Phoenix

Autism Society of Greater Phoenix is one of the best charitable organizations in Arizona, providing education, support, and services to families having a loved one with autism. The qualified charitable organization (QCOs) provides help by holding free autism 101 online classes from the comfort of your home or office. Autism parents can also join events and support group meetings around the valley.

Cancer Support Community Arizona

Cancer Support Community Arizona is one of the best charitable organizations that provides support programs, education, healthy lifestyles, social connections and networks, information, resources, and referrals of cancer survivors and caregivers. The cancer support community is a 501 ( c) 3 qualified charitable organization in Arizona supporting Phoenix, AZ for over 21 years.

Central Arizona Shelter Services, Inc

Central Arizona Shelter Services, Inc is one of the best charitable organizations that provide shelter and housing solutions to Arizona, the fourth state with the highest poverty rate. Most Arizonians live from paycheck-to-paycheck or hand-to-mouth paycheck that when any emergency like sickness injury of a breadwinner can lead to homelessness. CASS’s vision and mission are to prevent, reduce and end homelessness among individuals and families by community solutions where everyone has a home. The mission has over 35 years of fighting homelessness. It is one of the Qualified Charitable Organizations in Arizona ( QCOs) for donors and taxpayers joining to support the movement.

Central Arizona Dental Society Foundation (CADS)

Central Arizona Dental Society Foundation is one of the best charitable organizations providing dental services at no cost to the uninsured or underinsured, unemployed, elderly, and disabled. The CADS foundation provides large-scale clinics where dental treatment is rendered to individuals who cannot afford dental care. This event is volunteer-driven and is also part of the Qualified Charitable Organizations in Arizona.

Special Needs Scholarships

The Special Needs Scholarship is listed in the State of Arizona on Schools Tuition Organization. They belong to those considered certified to receive donations for the individual Income tax credits. Once you decide to give them donations, you need to use forms 1040 and 323 when filing the first donation for individuals or jointly.

Arizona Christian School Tuition Organization, Inc. 

Arizona Christian School Tuition Organization is listed in the State of Arizona on Schools Tuition Organization certified to receive donations for income tax credits. ACSTO has a vision and mission that every student should have the opportunity to receive a Christian education. From history, ACSTO was established in 1998, giving 42,000 scholarships to $270 million. Due to your continuous donations, students can receive Christian Education.

 

Final Thought

 

best charitable organizations

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Every donation, whether to the best charitable organizations or schools tuition organizations, can earn you tax credits and further push the vision and mission of those organizations, schools, foundations in helping children, families, communities, foundations, and organizations cope through these challenging times. A little ounce of help will surely come the long way and help children gain a brighter and better future that lies ahead of them.

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