Give HOPE This Season: Contribute Through Tax Credits

By Katherine Koenig – It’s the perfect time to give right now – Arizona taxpayers can receive a tax credit by just by making donations to local charities or schools. To qualify, most donations (except private school contributions) must be made in the same year as the tax year, in other words, by December 31.

School Tax Credit

Residents can help by contributing to education through the School Tax Credit. All Arizona public schools qualify. Residents can specify which programs donations will support. For public school donations, an Arizona tax credit is available up to the maximum $200/yr (single) or $400/yr (married filing jointly). Several school districts now offer online contributions.

 Private School Tuition Tax Credit

Contributions to qualified private schools under this program are used to fund scholarships for tuition or grants. The new maximum tax credit for tax year 2012 for single taxpayers is $1,003 and for married taxpayers filing jointly is $2,006. Unlike the Public School Tax Credit, you can make this contribution through April 15, 2013 and claim it as a tax credit for either 2012 or 2013.

Charitable Contributions Tax Credit

When donating to a charity, deductions need to be itemized on an Arizona return. Most qualified charities will post information on their website. Organizations may also have a form for this contribution or an online payment system.

For information, visit Arizona Department of Revenue at www.azdor.gov and click on Tax Credits.

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