Francine’s Guide to Arizona Tax Credits…because Horses Help
inside please findsome of the questions I’m ask most often about the Arizona Tax Credit program. I hope you find this helpful. If you still have questions, don’t hesitate to reach out.
the most importantthing I like to remind people is you have a choice. You are going to give the money to the state (for them to decide how to spend) or you are going to give it to the organizations doing the work you care about.
more than one?
is there more than one type of tax credit?can i take advantage of all of them?at the same time?YES! You can give to…ü Qualified Charitable Organizations ü Qualified Foster Care Organizationü Public Schoolsü Private Tuition School OrganizationsAnd, you can give to all of them, up to each tax credit category’s giving limit.
Tax Credit Categoriesü Qualified Charitable OrganizationsOrganizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disabilityü Qualified Foster Care OrganizationOrganizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability, and provide immediate basic needs to at least 200 qualifying individuals in the foster care system
Tax Credit Categoriesü Public Schools Tax CreditAn individual may claim a nonrefundable tax credit for making contributions or paying fees directly to a public school in Arizona for support of eligible activities, programs or purposes as defined by the statute.ü Private School Tuition OrganizationOrganization which provides scholarships for students enrolled in Arizona private schools.
how much can i give?how much do i get back?Every Arizona tax filer, whether filing single or married, is eligible to donate to organizations certified to receive donations eligible for tax credit.You can give to one organization or many. You can give one time or many.Each year you can file your cumulative giving across organizations and tax credit categories as credit towards your taxes owed, up to the amount you owe. If you give more than you owe, you can roll those credits over for up to 5 years.
Qualified Charitable Organization (QCO)The maximum credit allowed is $800 for married filing joint filers and $400 for single, heads of household, and married filing separate filers.This tax credit is claimed on Form 321.
Qualified Foster Care Organization (QFCO)The maximum credit allowed is $1,000 for married filing joint filers and $500 for single, heads of household, and married filing separate filers.This tax credit is claimed on Form 352.
public schools tax creditThe maximum credit allowed is $400 for married filing joint filers and $200 for single, heads of household and married filing separate filers.This tax credit is claimed on Form 322.
private school tuition organizations (STO)(original)The maximum credit allowed is $611 for single, heads of household and married filing separate filers and $1,221 for married filing joint filers.This tax credit is claimed on Form 323.
private school tuition organizations (STO)(switcher)The maximum credit allowed is $608 for single, heads of household and married filing separate filers and $1,214 for married filing joint filers.This credit is claimed on Form 348 and is available to individual taxpayers who donate the maximum amount allowed under the original credit (Form 323).
get a refund?
what if i’m already going to get a refund?Not a problem; you can still take advantage of tax credits.Your refund will just get bigger! As long as your tax credit eligible gifts do not exceed your total tax liability (the total amount you owe) your refund will just increase by the amount given.If you give more than what you owe, you can roll-over the extra amount to use as credits the next year (or for the next 5 years!).
what if use TurboTax (or other self-filing software)?Not a problem; it might even be easier.TurboTax and other software tools handle tax credits quite smoothly. In fact, you do not need to know the form numbers or “find” where to capture your donations. TurboTax (and similar programs) will “ask” or guide you through the process as easily as other steps.Remember, these credits are used towards state taxes, and captured as part of state filing process. If you aren’t prompted to enter your tax credit eligible gifts, just use the software’s search tool and look for ‘tax credit.’
when can i give?when can i use my credits?(or get my money back?)Donations made to qualified organizations between January 1stand December 31st2022 can be filed as tax credits to reduce 2022 taxes owed or increase 2022 refund.Donations made between January 1stand April 18th2022 can be filed as tax credits toward 2021 taxes or 2022 taxes.
If you have more questions…The Arizona Department of Revenue has a helpful website with detail, and form links. You can visit them here -https://azdor.gov/tax-creditsYou can also reach out to your tax professional or I can connect you with a donation specialist at Horses Help.
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