How Arizonans can save money when donating this Giving Tuesday

PHOENIX — There’s a lot Arizonans who want to defy the new study saying they’re stingy can do to help others this Giving Tuesday.

In fact, donating money can actually help you, according to Octavio Ceja, the tax director of Asset Preservation Wealth and Tax, a Valley financial planning company.

“Unfortunately, Arizona ranks really low on the list of states donating back to the community,” Ceja told KTAR News 92.3 FM’s Arizona’s Morning News on Tuesday.

In fact, Arizona ranked No. 49 when it comes to charitable giving when compared to the rest of the U.S., according to a new WalletHub study.

Ceja hopes that raising awareness about the various Arizona tax credits can change that.

“Arizona has a wonderful program where you’re allowed to donate from your tax liability to reduce it,” Ceja said.

What to know about Arizona tax credits this Giving Tuesday

Ceja said there are four types of Arizona tax credits that in-state taxpayers should know about.

“A state tax credit lowers your tax liability, unlike deductions, which reduce your taxable income,” Ceja said. “State tax credits reduce your tax liability by the amount that you donate dollar for dollar.”

One of the categories of charitable giving that can give donors a tax credit is education.

“For example, my son is a graduate of Centennial High School,” Ceja said. “When he participated in school activities, as a single, I can give up to the max amount of $200.”

In addition to giving to public schools, taxpayers can also qualify for these credits by giving to qualifying charities, foster care and school tuition organizations.

Furthermore, they’re doubly beneficial: Taxpayers can get the credit on their state and federal tax forms, Ceja said.

Those who have a specific charity in mind can check to see if it qualifies for the tax credit online.