The following provides general information about tax credits for donations to charities.
For complete details, refer to the Arizona Revised Statutes. https://www.azdor.gov/about/faqs/charitabletaxcredit.aspx
In case of inconsistency or omission the language of the Arizona Revised Statues will prevail. Please consult with your tax professional to understand how this information affects or does not affect your individual tax returns.
What is Arizona’s Charitable Tax Credit?
For taxable years beginning on or after January 1, 1998, Arizona Law provides a credit for cash contributions made to certain qualified charities. You may qualify for this credit if you make cash contributions to a qualifying charity, and El Grupo is a qualifying charity as list at https://www.azdor.gov/Portals/0/RefundCredits/CertifiedCharities2017.pdf.
For 2016 and later years, the maximum amount of the credit is $400.00 for single taxpayers or heads of household.
For Married taxpayers, the maximum credit is $800.00. If married taxpayers file separate returns, each spouse may claim ½ of the credit that would have been allowed on a joint return.
I already donate to my child’s school. Can I claim this Credit also?
There are five different qualified areas eligible for a tax credit, and you can claim each of them in the same tax year, up to your tax liability from that year.
- Qualified Charitable Organizations (i.e. El Grupo Youth Cycling)
- Qualified Foster Care Charitable Organizations
- Public Schools
- Private School Tuition Organizations
- Arizona Military Family Relief Funds
Each have different requirements and limits. Married couples can actually reduce their State liability by up to $4,773 if they were to contribute the maximum amount to each of these credits. Please note that you can use the credits for any particular tax year only up to your liability for that same tax year. However, many of these credits can be carried forward for up to five years if they are unused.
I don’t usually have to pay the State each April. Could I still benefit?
The Credit reduces your State tax liability, meaning that, after all credits and deductions, you could be eligible for a refund if you had Arizona State taxes withheld from your paycheck or paid estimated taxes. By reducing your initial liability, the Credit could have the effect of reducing the money you owe to the State or increasing your refund.
When is the deadline to make a donation?
Beginning with the 2016 tax year, credit eligible contributions made to a Qualifying Charitable Organization (i.e. El Grupo!) that are made on or before April 15th may be applied to either the current or the preceding taxable year for your Arizona State tax return. In order for donations to qualify for your federal tax return, they must be made by December 31 of that tax year.
Do I have to itemize my tax returns?
YOU DO NOT!
For taxable years 2013 and beyond, the requirement to itemize deductions on the State return has been eliminated. You cannot claim both a tax credit and an itemized deduction for the same contribution on your State return; however, you may claim the Arizona Charitable Tax Credit on your State return and an itemized deduction for the amount of the contribution on the Federal return.
How much can I contribute?
FOR THE QUALIFIED CHARITABLE ORGANIZATION TAX CREDIT (i.e. El Grupo Youth Cycling)
For Single taxpayers or Heads of Household, the maximum credit is $400.00. For Married taxpayers, the maximum credit is $800.00. If married taxpayers file separate returns, each spouse may claim ½ of the credit that would have been allowed on a joint return.
DONATE TODAY for your Arizona State Charitable Tax Credit!