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For #GivingTuesday 
, this is a reminder that Arizona provides a $1 for $1 tax credit* on your AZ individual tax return for cash donations to qualifying charities. This is a GREAT way to donate to local charities & receive a tax credit on your AZ return.
(*see limits below) 1/
, this is a reminder that Arizona provides a $1 for $1 tax credit* on your AZ individual tax return for cash donations to qualifying charities. This is a GREAT way to donate to local charities & receive a tax credit on your AZ return. (*see limits below) 1/
Here’s a good summary of the various AZ tax credits: https://www.hhcpa.com/newsletter-archive/arizonas-2020-charitable-tax-credits/ (thanks to @MelindaNCPA for sharing!) 2/
Limits: For donations to Qualifying Charitable Organizations (QCOs), this credit is up to $400 for single (& HOH & MFS) filers and $800 for married filing jointly. Here’s the list of QCOs: https://azdor.gov/sites/default/files/media/CREDITS_2020_qco.pdf
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Limits: For donations to Qualifying Foster Care Charitable Organizations (QFCOs), this credit is up to $500 for single (& HOH & MFS) filers and $1,000 for married filing jointly. Here’s the list of QFCOs: https://azdor.gov/sites/default/files/media/CREDITS_2020_qfco.pdf
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Note, these credits are NON-refundable. On your AZ tax return, the tax is calculated 1st & then your AZ credits (up to the limits) are applied up to the amount of the tax. Then your W2 withholdings & ES tax pymts are applied & may result in a refund. 5/
If your 2020 allowable tax credits for donations to QCOs and QFCOs exceeds your 2020 AZ tax, the unused credit may be carried forward for up to the next 5 consecutive years. 6/
Here’s an example: AZ residents, married filing jointly, only income is W2 of $75K. No dependents, standard deduction of $24.4K. AZ tax would be approx. $1.3K. If they gave $800 total to QCOs, QFCOs, AZ public schools, etc, their AZ tax would be reduced to $511. 7/
Note – you can claim up to the max amount for your filing status for each credits. IE – if my hubs & I file jointly in AZ, we can donate up to $800 to QCOs and ALSO $1,000 to QFCOs. Then if this $1,800 > our AZ tax, the excess credit carries forward. 8/
More info from the AZ Department of Revenue: https://azdor.gov/tax-credits/contributions-qcos-and-qfcos
Also standard disclaimer: this thread is not intended as tax advice for your specific situation, consult your tax pro. 9/
Also standard disclaimer: this thread is not intended as tax advice for your specific situation, consult your tax pro. 9/
Some of my favorite QCOs:
-Matthew’s Crossing Food bank (see: https://matthewscrossing.org/donate/ )
-St. Mary’s Food Bank (see: https://www.firstfoodbank.org/ )
-Jewish Family & Children’s Service (see: https://www.jfcsaz.org/donate/ )
-Phoenix Indian Center (see: https://phxindcenter.org/financial-support/)
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-Matthew’s Crossing Food bank (see: https://matthewscrossing.org/donate/ )
-St. Mary’s Food Bank (see: https://www.firstfoodbank.org/ )
-Jewish Family & Children’s Service (see: https://www.jfcsaz.org/donate/ )
-Phoenix Indian Center (see: https://phxindcenter.org/financial-support/)
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Two amazing QFCOs:
-Streetlight USA (see: https://www.streetlightusa.org/ ). Provides counseling & services to girls recovering from sex trafficking & abuse.
-Helen’s Hope Chest (see: https://helenshopechest.org/ ). Provides clothing, etc. for children in foster & kinship care.
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-Streetlight USA (see: https://www.streetlightusa.org/ ). Provides counseling & services to girls recovering from sex trafficking & abuse.
-Helen’s Hope Chest (see: https://helenshopechest.org/ ). Provides clothing, etc. for children in foster & kinship care.
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Also, feel free to plug your favorite AZ QCOs and QFCOs in the replies. 12/12
