Our Blog

The Arizona state tax credit charity, choosing where your tax money goes

Thinking of moving to Arizona? Go ahead, make that move! It is time to take that plunge. Give in to the magic of exploring the caverns of the Grand Canyon and trace the winding Colorado River. It is a life-changing decision and one we do not want you to regret in the future. That is why aside from the breathtaking views and impressive collection of wildlife, we throw in tax credits to sweeten the package.

Our tax credits allow you to address the pressing concerns of the communities such as homeless children, caring for the sick and the disabled, temporarily unemployed, etc. You have a choice of donating a total amount of $400 to a Qualifying Charitable Organization of your choice if you are single and claiming this as your tax credit when you file your income tax return for the year. Just make sure it has the specific QCO code, which is required to be written in Form 321. You may inform your friends who are either head of household or married but file separate returns and claim the same amount as a tax credit. Moreover, your married friends can avail of $800 tax credit if they file their return jointly.

Suppose you donate to a foster home that is listed under Qualifying Foster Care Organization. In that case, you may avail of a maximum amount of $500 tax credit, which will also apply to heads of households and a married couple but file their returns separately. In contrast, if they file their returns jointly, they are allowed a maximum of 1000 dollars credit. Do not forget to write the designated QFCO Code in Form 352.

What is also good about this is, you can combine these tax credits for as long as they do not go beyond your tax liability for the year. In case you wish to donate to the Arizona Military Family Relief Fund to help war veterans and their families plus the military personnel, you may claim a tax credit by using Form 340.

So basically, as a taxpayer, your liabilities to the state are greatly reduced plus you take control of where your taxes go. Be sure that you keep the receipt for each cash donation made since these serve as proofs that will be attached to the proper form that you need to file in your individual or joint tax return. This is particularly true in instances where you have donated to various charities of different codes. Please do take note of the maximum allowable credits. Some credits like that donated to the Arizona Military Family Relief Fund can be carried over to the next return only within the next five consecutive years.