Tax time can be a stressful time of year as you pull together all of your relevant information, income statements, and charitable donations to finish your tax returns. Many individuals who rent don’t itemize their deductions because they find that it’s simpler to just take the standard deduction. However, Arizona’s charitable and school tax credits allow taxpayers to take a dollar-for-dollar credit on their taxes. There’s still time to make these donations.
Tax deductions vs. tax credits
Tax deductions can subtract monies from what you owe. The state tax credits reduce the amount of tax that you owe to the State of Arizona. Every taxpayer who pays Arizona state income tax should consider making these donations to qualified charities and schools of their choice.
The credit for donations made to Qualifying Charitable Organizations, formally known as the Working Poor Tax Credit, allows taxpayers to contribute to any of a long list of nonprofits (501(c)3s) that support Arizona residents. Each filer can earn a tax credit of up to $400 for single or head of household filers. There’s also a $500 tax credit that can be claimed for donations to Qualifying Foster Care Charitable Organizations.
School tax credits
Any taxpayer with a liability for income tax to the State can take advantage of the school tax credit programs as well. One doesn’t have to have students in schools to take advantage of the school tax credit programs. There are three public and private school tax credit programs and taxpayers can take advantage of all of the programs.
Always consult a tax professional to get advice on your liabilities and tax preparation.