Making charitable contributions is a great way to give back to our community and it makes us feel better as human beings. Well now contributions in Arizona will net you larger tax credits beginning in 2016!
Arizona has amended its tax code to increase the amount of tax credit for cash contributions made to qualifying charitable organizations and qualifying foster care organizations, and allows taxpayers to receive separate credits for both of these contributions.
New Rules:
Increases the tax credit for cash contributions to quali ed charitable organizations from $200 to $400 for a single individual or a head of household, and from $400 to $800 for a married couple filing jointly.
Increases the tax credit for contributions to a qualifying foster care organization from $400 to $500 for a single individual or head of household, and from $800 to $1,000 for a married couple filing a joint return.
Specifies that taxpayers are eligible to receive both of the following tax credits separately:
a) A tax credit for contributions made to a human beings. Well now charitable qualifying charitable organization. contributions in Arizona will net you.
b) A tax credit for contributions made to a qualifying foster care organization.
So a married couple filing a joint return could donate $800 to a qualified charitable organization and $1,000 to a foster care organization and claim both contributions for full credit on their 2016 Arizona Income Tax Return. Of course, these donations are still deductible on the Federal Income Tax Return as charitable contributions as part of your itemized deductions as well.
Please consult with your income tax advisor to determine how the new rules will impact your tax situation.
