Investing in Children Doesn’t Cost You a Dime
The Arizona Charitable Tax Credit allows individuals and couples to make a contribution to an “Arizona Qualifying Charitable Organization,” and direct where your tax dollars are spent and support local children in foster care. Sunshine Acres Children’s Home is a 501(c)3 Qualifying Charitable Organization and donations may qualify for a tax credit on your Arizona state taxes.
(Note: New legislation makes the charitable tax credit its own stand-alone category, different from the Public School, Private School and Foster Care tax credits. The deadline to make a donation and qualify for a charitable tax credit is the tax filing deadline. Please talk to your tax advisor to learn more.
For married taxpayers, the maximum credit is $800.
For single taxpayers or heads of household, the maximum amount is $400.
For more information about this tax advantage, please read the following commonly asked questions and their answers.
Q: How does it work?
A: When you receive your W-2 and complete your tax return, one of three things will happen.
- You end up having no tax liability,
- You overpaid during the year and are receiving a refund, or
- You owe additional state taxes because not enough withholdings occurred during the year from your paychecks.
If you fall into #2 or #3, wou will pay Arizona state income taxes. Taking advantage of the tax credit allows you either to increase the amount of refund you receive from the state or decrease what you owe to the state. It also allows a say in where your tax payment actually goes.
Q: Is there a limit to how much I can invest?
A: Of course, Sunshine Acres Children’s Home will accept donations in any amount. New legislation in 2016 now means the most you can give that will qualify for the tax credit is:
- $400 – Single Filer
- $800 – Married Filer
Q: Who can contribute?
A: Anyone can invest in our Miracle in the Desert. Anyone who pays Arizona state taxes, whether you itemize or not, single or married, can qualify for the tax credit.
Q: What's the deadline to contribute?
A: You must give before tax filing deadline for the tax credit to apply to the current tax year.
Q: Do you receive any government funding?
A: No! We do not receive government support for the children and though we are donor-funded, we do not conduct fundraising/solicitation for ourselves. As a 501(c)3 nonprofit organization, every contribution is valuable and necessary for our continued success. Our success depends entirely on generous individual, foundation and corporate donors and still today, we do not turn children away for financial reasons.
Q: Is a tax credit different from a tax deduction?
A: Yes. Tax deductions are expenses, including charitable donations, that reduce your total taxable income and therefore the amount of tax you pay. A tax credit is different: A tax credit allows you to redirect 100 percent of the amount designated (up to $400 for taxpayers filing jointly and $200 for individual taxpayers), dollar-for-dollar, to the areas you choose.
Additionally, if you itemize your taxes on your U.S. federal tax return, you may be able to claim your donation as a federal tax deduction, thus lowering the amount of federal tax you’ll pay to the IRS.*
We encourage you to check with your professional tax advisor for advice on your personal tax situation and to learn how charitable giving to Sunshine Acres may specifically benefit you.
Sunshine Acres is not a tax consultant and, as with all financial matters , recommends our donors contact a qualified tax professional for expert advice.
I sit here reflecting upon my life’s battles, and I can’t begin to thank Aunt Vera enough for what a wonderful life she has given me here at Sunshine Acres. I once was a child who had nothing – living under bridges, getting beaten and panhandling to survive. Because of Sunshine Acres, today I am a man full of love and happiness.