Tax Break Donations In Tucson
Making a charitable donation is a fantastic opportunity to make a difference for good in your community while reducing what you owe on your taxes at the same time! This type of giving iinvolves tax break donations in Tucson Arizona – and it’s one of the most effective ways to give!
Arizona offers a unique chance for taxpayers to give to local charities and receive a dollar-for-dollar tax credit match. In effect, you can give hundreds of dollars then have that same amount slashed from your AZ state tax burden. With so many charities doing meaningful, life-changing work on behalf of community members, your charitable giving greatly impacts people’s lives.
Plus, your donation won’t cost you a penny if you use the AZ tax credit within the giving limit (up to $400 for qualifying charities and $500 for qualifying foster care charitable organizations for individual filers) and you have a tax burden large enough to cover the amount you give. Additionally, Even if your tax burden is smaller than the tax credit you receive by giving, you can still carry forward tax credits for up to five years to optimize your giving!
You Can Carry Forward AZ Tax Credits
Suppose you anticipate you will owe about $400 in state taxes for the 2019 tax year. So you decide to give $400 to your favorite local charity, such as those included on our list of qualifying charity organizations of Southern Arizona. Then, once you file your taxes, you find out you only owe $300 on your AZ state taxes. In this case, you can use $300 of your $400 tax credit. The remaining $100 in credit can be applied to future tax years for up to five years!
How to Utilize Your Tax Break Donations In Tucson
Make a cash donation to a qualifying charitable organization or a qualifying foster care charitable organization–or both, you can combine credits up to the max allowable limit! Plus, You can give all the way up to April 15, 2020, and still get the credit for your 2019 tax return!
Document the charitable gift. Qualifying charitable organizations and qualifying foster care charitable organizations often have a fast, easy way to get documentation of the donation you make. In fact, most can be obtained right away online or in-person when you give. Just be sure to save the document to use when you file your taxes. You can use this for your tax break donations In Tucson records.
Use Form 321 for Qualifying Charitable Organizations (QCO) and Form 352 for Qualifying Foster Care Charitable Organizations (QFCO) to get the tax credit when you file your taxes. Use the “QCO Code” or “QFCO Code” of certified organizations to claim the tax credits for your contributions. You can find a list of organizations with their codes here.
Pat yourself on the back for giving to local charities and optimizing your gift by getting a dollar-for-dollar tax break!
Credit for Contributions to Qualifying Charitable Organizations
Get this individual income tax credit for gifts given to Qualifying Charitable Organizations. These charities help residents of Arizona in need of resources and/or those with chronic illnesses or physical disabilities. The max credit you can get in a single year is $800 for married filing joint filers and $400 for single, heads of household, and married filing separate filers. This is the perfect example of tax break donations in Tucson.
Credit for Contributions to Qualifying Foster Care Charitable Organizations
This is a great credit for your tax break donations in Tucson. Receive this individual income tax credit for donations to Qualifying Foster Care Charitable Organizations help residents of Arizona in need as well those in the foster care system. The max credit allowed each year is $1,000 for married filing joint filers and $500 for single, heads of household, and married filing separate filers.
Get Out there and Give!
With the AZ Charitable Tax Credit, you control how a portion of your tax dollars are allocated. This credit lets you decide where funds should go to best help your community, and you get it all back in the form of an AZ tax credit so you can lower or even eliminate your taxes owed this year–and in future years!
Support the Needs of the Most Vulnerable in Our Communities
As you think about where you would like to make an impact, remember that the Give Local. Keep Local. Arizona Charitable Tax Credit Coalition is a fantastic source to find charities making a difference at the local level in Southern Arizona. These state-certified Qualifying Charitable Organizations and Qualifying Charitable Foster Care Organizations help to meet the needs of so many people in our local communities each day.
Your donation makes a real difference for kids, parents, grandparents, families, and individuals in need. With the Arizona Charitable Tax Credit, it’s never been easier to make a tangible impact. You can find an organization to donate to and start making a difference today! Get a head start on your tax break donations In Tucson with us.
If you have any questions feel free to contact us today.