Time to make your charitable tax deductions

PHOENIX — With just three days to go before the end of the year, it’s time to start thinking about your taxes for 2016.

If you’re inclined to make charitable donations, but haven’t done so yet, you’ve got until Dec. 31. Non-cash donations, which include household items and clothing, are deductible, as well as donations to many charities.

Phoenix accountant Chris Hacker says Arizona has the bonus of offering a tax credit for donations to public schools, private schools and certain state-approved charitable organizations.

“It’s a two-for-one. You can reduce your IRS tax by reducing your income,” Hacker explained. “You can reduce your Arizona tax by reducing the tax itself with a credit.”

He added that these donations operate differently on your tax return.

“They are donations on the IRS side on Schedule A and they are tax credits on the state of Arizona that reduce all of your Arizona liability,” Hacker said. “It’s a dollar-for-dollar tax reduction on the state of Arizona side.”

If you’re a procrastinator, you can push making those tax credit donations until April 15 of next year.

However, the typical donations that reduce your taxable income must be made by Dec. 31.

The list of “qualifying charitable organizations” shows specific dollar limits on the three types of Arizona tax credits.