AZ Tax Credits Update - 2012

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.

You can direct where your state tax dollars are spent!

 

School Tax Credits

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.

Click here for a complete list of schools that qualify for the credits:

http://www.azdor.gov/TaxCredits/SchoolTaxCreditsforIndividuals.aspx

In sum, every Arizona Resident is eligible to take the following maximum annual education credits for 2012:

Type of Credit	Filing Status
	Single/HOH	Married Filing Joint
Private School	1,003	2,006
Public School	200	400
Total Available	1,203	2,406

 

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.

Please note that when preparing your tax returns, we will need the following information about your tax credit donation: Payee, date donation made, amount of donation.

Unlike other charitable donations which merely provide deductions that can save you up to 5.4% on your tax bill, a tax credit saves you 100% of the tax. That is for every $1 you spend on a tax credit donation, you may subtract $1 from your Arizona Tax Bill.

Charitable Credit for the Working Poor

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 2012 taxes.

For a complete list of organizations that qualify, please click below….

http://www.azdor.gov/LinkClick.aspx?fileticket=HMFAW1KQl_k%3d&tabid=133

Single Taxpayers and Heads of Households can claim a credit for a donation of up to $200. Married taxpayers filing joint returns may claim a credit of up to $400.