As year-end approaches, we wanted to remind you of the major changes to the Arizona tax credit programs for 2016 that might affect your charitable giving plans. This year, the limit for credits for contributions made to Qualifying Charitable Organizations has doubled to $400 (single) or $800 (married filing jointly). The Qualifying Foster Care Charitable Organizations Credit is now a separate credit and the limit has increased to $500 (single) or $1,000 (married filing jointly). Please keep in mind that these contributions may also be deductible on your federal tax return, which can provide an additional benefit. These credits are now available to be made up through the April tax deadline (April 17, 2017) to take as a credit on your 2016 Arizona tax return (but keep in mind the federal deduction would then be taken in 2017).
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. These contributions can also be made through April 17, 2017 and be claimed as a credit on your 2016 Arizona tax return.
Please see our summary of six common Arizona tax credits available for contributions made to certain organizations.
Return to Financial Update