How to Take Advantage of Arizona Tax Credits

Do you pay even $1 of tax to the State of Arizona? If the answer is yes, then you can choose to pledge those dollars directly to education or to charitable organizations that assist the working poor. There are 2 types of Arizona Tax Credits that support the funding of education in Arizona. There is the private school tuition credit and the public school fee credit. The Arizona Department of Revenue recently extended the tax credit deadline. If you make a contribution by April 15, 2011, you have the option of using it as a tax credit on either your 2010 or 2011 return. Here is the Arizona Department of Revenue’s website for details on how you can take advantage of these tax credits. http://www.azdor.gov/TaxCredits.aspx

Furthermore, there are a number of charities that depend on donations and provide programs throughout our community. Many of these organizations are really struggling right now, and you can help them by taking advantage of the Charitable Tax Credit and saving on your 2010 taxes. (Warning - Please note that this credit is only available to individual taxpayers that itemize their deductions. If you take the standard deduction, then you may not claim the credit!)

In sum, every Arizona Resident is eligible to take the following maximum annual charitable/education credits:

Type of Credit	Filing Status
	Single/Head of Household	Married Filing Joint
Private School	500	1,000
Public School	200	400
Charitable Organization	200	400
Total Available	900	1,800

Oftentimes, if you have children in public school, you will be paying fees for extracurricular activities or special programs. Keep track of those fees, since they will most likely qualify for the credit and reduce your tax bill.

If someone close to you is attending a private school (other than your child), you can make a specific tax credit donation to the private school that will benefit that person specifically, if they qualify to receive a scholarship. You would need to contact the school directly to make arrangements for this type of donation.