Investing in Children Doesn’t Cost You a Dime
Arizona provides a separate tax credits for individuals who make contributions to charitable organizations: one is for donations to Qualifying Charitable Organizations (QCO) such as Sunshine Acres Children’s Home. Individuals making cash donations made to these charities may claim these tax credits on their Arizona Personal Income Tax returns.
Effective in 2016, credit eligible contributions made on or before the 15th day of the fourth month following the close of the taxable year may be applied to either the current or the preceding taxable year and are considered to have been made on the last day of that taxable year.
Beginning in 2016: April 15 (for previous tax year)
Forms to File
AZ Form 321 & Instructions (QCO) https://azdor.gov/forms/tax-credits-forms/credit-contributions-qualifying-charitable-organizations
Maximum Credit for Any Tax Year.
Single or head of household: $400 (Qualifying Charitable Organization)
Married filing jointly: $800 (Qualifying Charitable Organization)
For more information about this tax advantage, please read the following commonly asked questions and their answers.
Q: How does it work?
- 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?
Q: What's the deadline to contribute?
Q: Do you receive any government funding?
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.