By: Laura Walton AFC®
If you’re in your 20’s or 30’s, you’re probably juggling more than one money goal: paying off debt, investing in your retirement plan, saving for a down payment, etc. Although charitable contributions might be a priority for you, it’s hard to fit them in your budget. Well, I’ve got a win-win for you: if you will owe taxes to the State of Arizona, you can earn a dollar-for-dollar credit against those taxes by making contributions to qualifying organizations.
Guest blogger TK Irons explained in a recent post how great tax credits are. For example, if you will owe $900 in State taxes, instead of paying the State you can contribute $400 to a Qualifying Charitable Organization and $500 to a Qualifying Foster Care Charitable Organization. You win by eliminating your tax obligation through the credits you earn and the charities win by receiving your cash donation.
There are rules of course and on the Arizona Department of Revenue website you’ll find detailed information about these and other available tax credits. For now, start here:
Contributions to Qualifying Charitable Organizations
There are two tax credits available to individual income taxpayers for charitable donations: one for donations to Qualifying Charitable Organizations and one for donations to Qualifying Foster Care Charitable Organizations. Individuals making cash donations made to these charities may claim these tax credits on their Arizona Personal Income Tax returns.
• Contributions to Qualifying Charitable Organizations
• Contributions to Qualifying Foster Care Charitable Organizations