Taxes take different forms like income tax, Arizona charitable tax credit, tax incentives, and more. A certain percentage of your salary will be deducted, which will serve as your income tax. When you buy designer shoes and bags in a mall, you pay for sales tax. If you own a lot, you are also required to pay for property tax. Paying taxes is considered a civic obligation and a requirement under the law. If you fail to pay or evade your taxes, there will be serious penalties and consequences you have to face.
Do you wonder where your taxes go? Do you want to make sure that the well-earned money goes to a deserving organization? Arizona Charitable Tax Credit allows taxpayers to deduct their income tax by donating to qualified charitable organizations like Children’s Care Arizona.
Here are five important things that you need to know about Arizona Charitable Tax Credit:
- It is non-refundable.
- Tax donations are credited only to individuals. Corporations and companies are not qualified to receive tax credit benefits.
- There are two ways in filing for a tax credit, each having its respective minimum allowable credit. Single filer has a minimum allowable credit of $400, and $800 for Joint married filers.
- You can avail of a dollar-to-dollar deduction if you donate to Qualifying Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs). Verify if the organization is certified by the state of Arizona. If not, your donation will not be credited.
- Make sure to have a clean record and documentation of your receipt/s from the charity. Itemize your contributions using Arizona state tax forms. For tax donations, use IRS Form 1040, Schedule A. For non-cash donations such as charitable goods, use IRS Form 8283.
Learn more about the limits of the Arizona Charitable Tax Credit:
- There is no minimum dollar threshold required for the tax credit.
- Your tax credits can only be applied to your current tax liability to the state of Arizona.
- You can carry over a credit if you have surpassed your yearly tax liability for five consecutive years provided that every carryover, it does not surpass the maximum allowable tax credit.
Take note of the important dates and deadlines imposed by the Internal Revenue Service (IRS). The state of Arizona allows taxpayers to claim their tax credits through April of the current year, which will be applied to the previous tax year.
You can donate your taxes to fund their charitable works! You did not only put your money into good use, but you also helped them in reaching their vision and supporting their good deeds. With that said, there are also humanitarian foundations, and philanthropic organizations are in need of funds.
Get the most out of your tax money. Enjoy the benefits, get a refund, and make their lives a little easier and a little bit more comfortable.