Most Arizona taxpayers believed before that they had to file their contributions to non-profit charity organizations before the last day of the year (the 31st of December) to qualify for state tax credits of the said tax year. Contrary to the misconception, Arizona permits taxpayers to file their tax reports and claim tax credits for the prior year until April of the current year. So, for example, if you are filing your taxes for the 2021 tax year, you can Arizona tax credit to qualified non-profit charity organizations until the 15th of April, 2022.
Tax Filing Forms
While the state of Arizona gives a time extension until the 15th of April, 2022, for contribution to your preferred non-profit charity organizations, you need to list your donations separately for those two calendar years. You must use Arizona Forms 321 and 352 for this purpose.
For example, you are to file for your tax credits for the tax year 2021. The cash donations you made between the 1st of January to the 31st of December of 2021 must be filled on Part 1, Sec A of Arizona Form 321 for non-profit charity organizations and Form 352 for qualified foster care charitable organizations (QFCO). Contributions you processed from the 1st of January to the 15th of April, 2022 must be filed on Part 1, Sec B of Arizona Form 321 for non-profit charity organizations and Form 352 for qualified foster care charitable organizations (QCFO).
State Credit Deadlines Differ From IRS Federal Credits and Deductions Deadlines
One of the most crucial pointers that an Arizona taxpayer should note is that the Arizona state tax filing deadline is different from the IRS federal tax filing deadline. According to the IRS guidelines, if you want to apply for your donations to be deductible on federal tax returns, you should have the processing complete by the 31st of December, the end of the tax year.
Ensure to mark this date in your calendar when planning your charitable donations and file your federal and state tax credits and deductions. We also recommended that you have a thorough consultation with your tax advisor for the best timing for your charitable contributions to non-profit charity organizations in Arizona.
Pointers That You Should Note About The Arizona Charitable Tax Credit
Besides the credit cut-off date, there is other relevant information that you should note about the Arizona charitable tax credit this 2022. Getting a better understanding will help you make the most out of your charitable contributions. Hopefully, our summary and tips will be valuable as you get through the entire tax season.
Here are some of the notable facts that you should know about charitable tax credits:
- The Arizona Charitable Tax Credit is a state tax credit type that lowers a taxpayer’s liability when donating to qualified non-profit charity organizations within the state. It is different from tax deductions.
- For single persons, household head filers, and married filing separately, the maximum credit allowed is $400 for qualified charitable organizations (QCO) and $500 for qualified charitable contributions.
- Married couples filing jointly have a maximum allowable limit of $800 for qualified charitable organizations and $1,000 for qualified foster care organizations.
- The Arizona Charitable Tax Credit must be donated to a state-qualified non-profit charity organization or foster care organization by an individual or married couple. Contributions made through corporations are not accepted.
- Besides the Arizona Charitable Tax Credit, there are other tax credit types that you can look into, such as:
- Arizona Military Family Relief Fund Credit
- Arizona Public School Tax Credit
- Arizona Private School Tax Credit
- Overflow/ Plus Private School Tax Credit
- Under the Arizona Charitable Tax Credit guidelines, you can carry forward the donations to a qualified charitable organization and a QFCO that were not applied for the recent taxable year for a period of five consecutive years.
- And last but one of the most vital information you should note: The cut-off date for filing taxes, including tax credits, is the 15th of April, 2022, for the tax year 2021.
Who To Call For Help With Your Arizona Tax Credit
Making contributions, filing, and computing for your tax credits and deductions can be pretty confusing. It is best to seek help in getting these essential processes, as tax filing is something that you should do right to avoid complications.
Our best advice: Consult with a tax professional and discuss your current tax situation. If you need the best advisors, call us here at Children’s Care Arizona (480) 795 3775, and our Arizona team will be glad to help you get sound advice from tax consultants who have in-depth knowledge and experience in Arizona Charitable Tax Credit.
Additionally, there are contact details that you may want to try, as seen in Arizona Forms 352 and 321. It provides two phone numbers that you may call for concerns or questions about contributions, tax credits, and anything else you want to know about donating your tax credits to qualified charitable organizations and foster care charitable organizations.
- (602) 255 3381 for those located within the Phoenix metro area (customer care line)
- Toll-free: 800 352 4090, if you are from area codes 520 and 928
- Otherwise, you may browse through the Arizona Department of Revenue’s official website for more information.
Takeaway Thoughts: Donate Now, Help A Family Tomorrow
Arizona is one of many American states that offers a fantastic opportunity for choosing where your tax credits go. Besides lowering your state tax liabilities, contributing your tax credits to a charitable organization allows you to help families change lives in the future. With the information above, you can choose when is the best time for you to donate to the qualified organization of your choice and apply the contribution as a tax credit.
While you are at it, you may want to consider helping low-income families in Arizona with their child care, support, supervision, and schooling needs through Children’s Care Arizona, a 501(c)(3) organization that is a registered qualified charitable organization (QCO). Your Arizona tax credit will surely help will undoubtedly support a child’s after-school care needs, extracurricular activities, and supervision needs.