Ullmann & Company, PC
Increases to Arizona Tax Credit Amounts

This month, the Arizona Legislature passed a bill to increase the limits on the Qualifying Charitable Organizations Credit (formerly the Working Poor Credit) and the Qualifying Foster Care Charitable Organizations Credit. The bill also made these credits separate, so you can now contribute to one or both each year.  

Starting in tax year 2016, single individuals can make a contribution of up to $400 to a Qualifying Charitable Organization and a separate contribution of up to $500 to a Qualifying Foster Care Charitable Organization and receive a dollar-for-dollar tax credit for the contributions on their Arizona tax return. Married filing joint taxpayers can make a contribution of up to $800 to a Qualifying Charitable Organization and a separate contribution of up to $1,000 to a Qualifying Foster Care Charitable Organization and receive a dollar-for-dollar tax credit for the contributions on their Arizona tax return. Please keep in mind that these contributions may also be deductible on your federal tax return, which can provide an additional benefit. 

Each year, the limits for contributions to School Tuition Organizations also increase (these organizations provide scholarships for students to attend Arizona private schools). For tax year 2016, single individuals can receive tax credits for contributions up to $1,087 made to a qualified school tuition organization. Married filing joint taxpayers can receive tax credits for contributions up to $2,173 made to these organizations. 

Please see our summary of six common Arizona tax credits available for contributions made to certain organizations.  

Sources: www.azdor.gov and SB 1216


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Ullmann & Company, P.C.
4647 N. 32nd Street
Suite 220
Phoenix, AZ 85018
(602) 224-0166
e-mail: cpa@ullmanncpa.com