Arizona law provides a credit for cash contributions made to certain charities, and Aid to Women Centerand Life Choices Women's Clinics are two of them! The amount of this credit has recently doubled up to $400 for single taxpayers and up to $800 for married taxpayers.
A tax credit is a dollar-for-dollar reduction on the state income tax you owe. Tax credits reduce the amount of income tax you owe on your Arizona tax return. For example, if you owe $1,200 in state taxes and have donated $800, you are eligible for an $800 tax credit, and your net tax liability drops to $400.
If you are already getting credit for the public or private school tax credit donation, don't worry: you can give to both the school and our charitable organization and still take full credit for all contributions. You can't claim more than you owe in state taxes, however any unused credits can be carried forward for five years until used!
In order to take advantage of this opportunity to direct your tax dollars you must:
Whether you have questions about the tax credit, want more information about our services, or are just reaching out, we want to hear from you!
What qualifies a charity for the Tax Credit?
A qualifying charity is one that is exempt from federal income tax under IRS Code Section 501(c)(3). The charity must spend at least 50 percent of its budget on services for Arizona residents who receive Temporary Assistance for Needy Families benefits or for low income Arizona residents and their households.
This new law also extends the deadline for contributions up to the last day for tax filing.
That means that April 17, 2017 is the deadline to donate for the 2016 tax year.
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