Arizona Tax Credits are a great way to reduce taxes and help charities

By Jeffrey Brooks, CPA, CFP, MBA for JBrooks Wealth Advisors, PC, a Professional CPA and CFP Firm jeff@jbrookswa.com 602-292-2009 Please consult with your professional tax CPA regarding your specific circumstances!

We send out an Arizona Tax Credit package to our loyal clients for no charge. We believe adding value to clients and helping charities is worthwhile and should not be charged for!

 

Warning:  A client only can offset Arizona income tax to the extent of Arizona tax liability so someone who files what is called a “standard deduction” will not benefit.

 

The Arizona Private School Tuition Tax Credit Law, A.R.S. Section 43-1089 (nicknamed the Original Tax Credit), allows a single taxpayer to make a donation to private school  for up to $1067 for an individual and a married couple filing jointly to donate up to $2134, and receive a dollar-for-dollar tax credit against the taxpayer’s Arizona state income tax IF AZ tax liability is higher than the credit.

 

The tax credit for contributions to private school tuition organizations is claimed by the individual taxpayer on Form 323.

 

Now is the time to feel good about yourself and at the same time get your Arizona Tax Credit and reduce your federal and state personal income taxes.

If you have an Arizona tax liability of more than $3,734  in 2015 (before withholding and estimated taxes have been paid), you will actually come out ahead by making the contributions because you get an Arizona tax credit of $1 for every $1 you contribute to an eligible non-profit organization and in addition you get a tax deduction for federal tax purposes. So, if you are married filling jointly and made a $3,734 donation and are in the 30% federal tax bracket , you would be ahead by nearly  $1,120  federal tax savings!

Warnings:
1. You need to be careful to specify that you want the funds to be used for the Arizona tax credit.
2. You need to make the contribution for the Arizona Military Credit immediately because there is a limit on the dollars allowed for the credit.
3. Schools close down for Christmas recess and if the funds are not collected by the recess, the donation may be considered for the next tax year instead of the current tax year donation.

Be aware of a common error: Arizona allows a tax credit for 2015 for only certain credits  IF the donation is made before the April tax deadline. So if a donation is made in January 2016, Arizona will allow the credit for 2015  although federal will not allow the donation for 2015 but for 2016 because the donation payment was made in 2016. In the next year, 2016, you will get a tax deduction for federal but will not get another tax credit for Arizona!

If you are a client and  need the credit forms to take advantage of the tax credits, please contact our office and Shari will send you the forms in one package.

ARIZONA TAX CREDIT PACKAGE

• WORKING POOR CONTRIBUTION
$200 for filing Single
$400 for filing Married

Organization example:  Most of us are SO fortunate because we can see. Imagine how our lives would be affected if we could not see!!  Close your eyes or blindfold yourself for one day and you will appreciate your good fortune to be able to see clearly. Without eye sight, you cannot drive, you cannot find food in your refrigerator and you bump into walls.  Please generously donate to the:
ARIZONA CENTER for the BLIND and VISUALLY IMPAIRED and get the Arizona Working Poor Tax Credit and a charitable donation.

• PRIVATE SCHOOL CONTRIBUTION WITHOUT NEW PLUS PROGRAM
$ 535 for filing Single add $532 for PLUS PROGRAM
$1,070 for filing Married add $1064 for PLUS PROGRAM

Organization example:
ARIZONA CHRISTIAN SCHOOL TUITION ORGANIZATION, INC. (ACSTO)

• PUBLIC SCHOOL CONTRIBUTION
$200 for filing Single
$400 for filing Married

Organization example:
WASHINGTON ELEMENTARY SCHOOL DISTRICT #6
(Tumbleweed Elementary,  Peggy Pitts-Miller class)

• ARIZONA MILITARY FAMILY RELIEF FUND
$200 for filing Single
$400 for filing Married

Foster Care: see list of Foster Care providers by Googling

 

Thank you for allowing us to help you reduce your taxes and reduce IRS audit risk and giving us so many five star reviews on Google Plus.

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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009
Email: jeff@jbrookswa.com