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 involves 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.
Places to donate to for a tax break
Plus, your donation won’t cost you a penny if you use the AZ tax credit within the giving limit (up to $400 for the charities and $500 for 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. Charitable organizations and 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!
How to get your donation tax break
- Donate to the charity of your choice
- Prepare your Arizona State tax return
- Claim the donation when filing your tax return
Credit for Contributions to 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 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!
FAQ about Tax Break Donations in Tucson
For taxable years 2009 and later, the baseline year requirement has been eliminated.
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 amount of the contributions made to a qualifying charity for which you are claiming a credit. 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.
**Please note, On Thursday, August 23, 2018, the IRS proposed amendments to federal tax code regulations that may change how State tax credit donations are treated on your federal tax return. While the State tax credit remains unchanged, donations for which the full tax credit is claimed may be ineligible for an itemized federal deduction if made after August 27, 2018. As of today (8-27-18) this measure is still a proposal and will be open for public comment. Please contact your tax adviser or the Internal Revenue Service for questions or guidance.**
The Arizona Department of Revenue has revised its list of qualifying charities. During 2009 all previously certified charities were required to recertify. If a previously certified charity no longer qualifies, it will be removed from the Department’s published list effective January 1, 2010. Visit www.azdor.gov to view the Department’s updated list.
Yes, a qualifying charitable organization must send a written certification letter to the Arizona Department of Revenue. The Department shall review each written certification and determine whether the organization meets all the criteria to be considered a qualifying charitable organization and notify the organization of its determination. The Department may also periodically request recertification from the organization.
Services mean cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in Arizona.
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.
It is a charity that is exempt from federal income tax under Internal Revenue Code 501(c)(3). The charity is a designated community action agency that receives Community Services Block Grant Program Money under United States Code, Title 42, Section 9901. The charity must spend at least 50% of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families benefits, who are low income Arizona residents, or who are chronically ill or physically disabled children.
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 Charitable Organizations and 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.