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Dec 2, 2024|Blog, Child & Family Resources, Fundraising

Behind the Scenes Superheroes: Guide Your Tax Dollars to Good!

Hello Flowers,

In these times when many things may feel beyond our control, we have the power to make a positive impact. Thank you for your steadfast dedication and hard work in supporting our organization and the community as our own behind the scenes superheroes. To continue making a difference, we need your help!
There may be many things happening right now that feel beyond our control, but one thing we can do is direct our tax dollars to local causes while reducing our tax debt. Your help in spreading the word about the Arizona Charitable Tax Credit Awareness Campaign would be truly heroic.

Thank you so much for all your support!

How Do AZ Tax Credits Shift Control from the State to the People?
The Arizona Charitable Tax Credit allows you to directly fund causes you value, so long as they are classified as a qualified organization, while lowering your tax balance!

For example, if you are a single taxpayer and donate $421 to a Qualifying Charitable Organization (QCO) and another $526 to a Qualifying Foster Care Organization (QFCO), you can claim the full amount as a tax credit. This means you can reduce your state tax liability by the same amount you donated—$421 for the QCO and $526 for the QFCO, totaling 947 redirected state tax dollars to the charitable organizations of your choice.

This empowers you to support the initiatives that you believe are most beneficial to your community, without depending on the state, or anyone else to do it for you!

What is the AZ Charitable Tax Credit Process?
  • Dollar-for-Dollar Tax Reduction Opportunity: Gifts made can reduce your state tax liability for every dollar donated, up to the yearly maximum limits.

What does this mean?

You can choose what to fund with your tax money. If you typically have a balance due for taxes owed, you can lower that liability up to the yearly maximum limits, OR you can increase your potential refund by donating and claiming your available credits.

Example: if a single individual owes $1,500 in taxes but donates $421 to a qualifying charitable tax organization, their tax liability is reduced to $1,079.

What are the updated tax credit limits?
For the 2023 tax year, meaning when you file your taxes by April 15, 2025 or receive an extension for filing taxes due then, here are the maximum tax credits available for a dollar-for-dollar reduction:

  • Qualified Charitable Organizations (QCOs):

·         Married filing jointly: $938

·         Single, married filing separately, and heads of household: $470

  • Qualified Foster Care Organizations (QFCOs):

For 2023 (tax year 2022):

·         Married filing jointly: $1,051

·         Single, married filing separately, and heads of household: $526

 

For 2024 (tax year 2023):

·         Married filing jointly: $1,173

·         Single, married filing separately, and heads of household: $587

 

Note: You should always consult a tax expert or do the math yourself to determine how much you can expect to owe in taxes to make an educated decision.
  • Easy Process: Simply make a donation to a qualifying organization(s), keep your receipts, fill out the relevant form(s), and claim the credit on your state tax return!

How do I know which organizations are qualified?

Easy! Explore the following links, found on the Arizona Department of Revenue’s website, for a list of qualified organizations.

·         Click here* for a list of QCOs.

·         Click here* for a list of QFCOs.

How do I know which form or forms I need?

·         For donations to QCOs: Arizona Form 321

·         For donations to QFCOs: Arizona Form 352
  • Multiple Credits Available: You can take advantage of several tax credits in the same tax year, including the following:

·         Qualified Charitable Organizations (QCOs)

·         Qualified Foster Care Charitable Organizations (QFCOs)

·         Public Schools

·         School Tuition Organizations

·         Arizona Military Relief Fund
  • Carry Forward Unused Credits: Many credits can be carried forward for up to five years, if not fully used in the current year.

Don’t Forget!
If you didn’t have a chance to join us for our Tax Credit Talk last week, we have one more chance for you to attend! Hosted by our tax professional, Lindsey Saul, we’ll be discussing all things tax credit on January 29, 2025! We hope to see you there!

Click here for Free Registration! | Click for more about the Arizona Tax Credit!

Interested in giving in other ways?
Payroll Deduction: CFR offers yearly payroll deduction options if you would prefer to take advantage of AZ tax credits in that way. Deductions will begin January 15, 2025, and will run through the final pay period of 2025.

Lump-Sum Gift: A one-time gift at or above the total annual gift amount directly to CFR. CFR is a qualifying agency for the Arizona Charitable Tax Credit and will count towards your 2024 taxes.

If you are interested in signing up for payroll deductions, please fill out the attached Employee Giving Form and return to development@cfraz.org before November 29, 2024.

Questions or concerns?

Read more here: AZ Tax Credit | Tucson, AZ | Child & Family Resources

Please contact Fund Development at Development@cfraz.org
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