Helping those in need this holiday season can help you at tax time.
Arizona residents who donate to non-profits can claim the state’s charitable tax credit: A single person writing a $200 check or couples donating up to $400 can receive the state tax deduction.
In order to celebrate the giving season, a group of local non-profit organizations have banded together with a purpose, declaring this Tuesday as “Tax Credit Tuesday.”
The goal of the day, which is more commonly known as Giving Tuesday, is to spread the word about state tax credits that help local foster children and schools.
There are several different tax credits residents may be eligible for that will also help foster children or schools, including:
- Contributions to Qualifying Charitable Organizations: An individual Arizona tax credit available to taxpayers who make donations to a limited list of eligible nonprofit organizations that provide assistance to working, low-income individuals and families.
- Contributions to Qualifying Foster Care Charitable Organizations: An individual Arizona tax credit that opens up an additional $200 Arizona tax credit for single tax filers and an additional $400 for those filing married/joint.
- Contributions to Private School Tuition Organizations and Certified School Tuition Organizations: An individual Arizona tax credit for scholarships to private schools. The maximum credit that may be taken for tax year 2015 is $535 for single tax filers and $1,070 for married/filing joint.
- Contributions or Fees Paid to a Public School: An individual Arizona tax credit for contributions to public elementary, middle and high schools.
The nine organizations that are a part of “Tax Credit Tuesday” are: Arizona Community Foundation, Arizona Friends of Foster Children Foundation, Arizona Tuition Connection, Balsz School District, Educare Arizona, New Way Academy, Southwest Human Development, Voices for CASA Children, and Washington Elementary School District.
Jake Adams with Southwest Human Development said the organizations came together in order to educate Arizona taxpayers on where to donate their tax dollars.
“The Arizona Tax Credit Team includes schools and nonprofit organizations that give Arizona’s most vulnerable children a brighter future and the already existing tax credit opportunities are being highly underused at a time when funding is needed the most,” he said in a press release.
Tamera Shanker with the Arizona Friends of Foster Children said these donations help provide services such as specialized tutoring and field trips for children who would not otherwise get the opportunity.
Those donations must be made by the end of the year to count towards a 2015 tax return. Arizona residents can also claim a charitable deduction on their federal income tax return.