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Francine's 2020 Guide to Arizona Tax Credits

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Francine s Guide to Arizona Tax Credits because Horses Help

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inside please find some 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

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the most important thing 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

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more than one

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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 Qualified Charitable Organizations Qualified Foster Care Organization Public Schools Private Tuition School Organizations And you can give to all of them up to each tax credit category s giving limit

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Tax Credit Categories Qualified Charitable Organizations Organizations 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 Qualified Foster Care Organization Organizations 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

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Tax Credit Categories Public Schools Tax Credit An 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 Private School Tuition Organization Organization which provides scholarships for students enrolled in Arizona private schools

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how much

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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

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giving limits

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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

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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

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public schools tax credit The 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

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private school tuition organizations STO original The maximum credit allowed is 593 for single heads of household and married filing separate filers and 1 186 for married filing joint filers This tax credit is claimed on Form 323

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private school tuition organizations STO switcher The maximum credit allowed is 593 for single heads of household and married filing separate filers and 1 186 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

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get a refund

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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

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self file

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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

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timing

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when can i give when can i use my credits or get my money back Donations made to qualified organizations between January 1st and December 31st 2021 can be filed as tax credits to reduce 2021 taxes owed or increase 2021 refund Donations made between January 1st and May 17th 2021 can be filed as tax credits toward 2020 taxes or 2021 taxes

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other

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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 credits You can also reach out to your tax professional or I can connect you with a donation specialist at Horses Help

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