|
Tax Credit Questions &
Answers
What’s the difference between a tax credit and deduction?
A tax deduction is an expense that reduces taxable income. A tax credit
is applied to reduce tax liability dollar-for-dollar. Helping the
Working Poor Tax Credit is an actual credit off your state tax bill.
Can I still claim this on my Federal tax as a contribution?
Yes; your entire contribution is also eligible as a tax deduction on
your federal tax return.
Sounds like free money - what is the catch?
It is like free money - cost the donors nothing (if they qualify) except
for the use of their money until they file a state tax return, or
receive their refund. The Catch—Donors need to identify a qualified
organization such as Bridging AZ to support.
Can I take the tax credit if I don’t owe any money to
the State of Arizona when I file my taxes?
As long as you have a tax liability and you qualify through previous
years itemized deductions. The credit will increase your refund.
How do I document my contribution?
Bridging sends all donors a letter confirming their contribution.
How do I file for the credit?
You or your accountant needs to complete AZ Form 321 to claim the
credit. The form or link is included with materials provided by the
State of Arizona to all state tax filers.
Who can take advantage of the Arizona Tax Credit?
Only individuals who file and pay Arizona income tax.
In order to receive your 2007 tax credit your donation must be
postmarked or received before Dec 31st. 2007
Always check with a qualified and licensed tax
professional regarding all matters related to tax issues Bridging AZ
does not give legal or tax advice.
25 N. Extension Road
Mesa, AZ 85201
Phone: 480-833-3997
Fax: 480-833-9594
E-mail:
info@bridgingaz.org |
The Helping the Working Poor Tax Credit was
established by the Arizona State Legislature to provide financial
assistance to AZ registered 501(c)(3) nonprofits that spends at least
50% of its budget on services to Arizona residents who receive Temporary
Assistance for Needy Families benefits or to Arizona residents that live
in low-income or poverty levels.
To encourage cash charitable contributions, the Arizona
State Legislature allows most donors to take up to $200 ($400 per
married couple) off their Arizona State taxes, based on the amount of
the gift, in the form of a tax credit.
See
www.revenue.state.az.us
search “Tax Credit” or call
AZ Tax Payer Assistance 602-255-3381 |
|
|
Secure way to donate on line
$200 Maximum
Tax credit
Single Taxpayer
$400.Maximum
Tax credit
Married Couple
Plan for next years taxes
Single Tax payer $16.67 month
Plan for next years taxes
Married couple $33.34 month
|
|
