One week left in the year to take full advantage of the Arizona Tax Credit AND claim the donation on your federal tax return.
Before I write more about that, now is the time to click on the following link and book your appointment for 2020. Of course, you are still welcome to just drop off your information as well and we will get to work on it!
Set Appointment Here:
https://app.acuityscheduling.com/schedule.php?owner=16680567
The Tax Credit
Arizona tax credits are available for those who live in AZ. There are up to $4,469 in tax credits available for married filing joint returns. If you donate prior to 12/31, you can get a dollar for dollar tax credit toward your AZ tax liability AND can deduct the donation on your federal tax return as well.
The key to receiving the credit is that you must have a tax liability to AZ of at least the amount of the donation. This is not a refundable tax credit so if your total liability for AZ was only $1,000 and you donate $2,000, you could only use up to $1,000 of the tax credit to reduce your tax liability.
In order to also claim this donation on your federal tax return you would have to donate by 12/31/2019, and of course you would need to itemize on your federal return.
The standard deduction for 2019 is $24,400. So, if things like your mortgage interest, state and property taxes, and donations are above $24,400 then you could get the full benefit of the federal deduction and the state tax credit.
Here are the 4 categories that you can donate to and when added together come up to the max donations of $4,469 for married filing joint, half this amount for single filers.
- Private School tuition $2,269. This is great if you have someone you know that has their kids attend private school. You can help them pay their tuition through this donation and they are extremely grateful.
- Public School donation $400. This can be to any public school or district and can be directed to a specific club or student to help pay for extracurricular activities like drama, band, sports, etc.
- Qualified Charitable Organization $800. See list from link below
- Qualified Charitable Foster Organization $1,000. See list.
Find more about these credits at https://azdor.gov/tax-credits.
Find list of QCO and QFCO at https://azdor.gov/tax-credits/contributions-qcos-and-qfcos
Feel free to reach out to me directly at jeff@taxbeacon.us if you would like to know for sure if you can take full advantage of these credits.
Jeff Baugus’ “Real World” Personal Strategy Note
Jeff Baugus’ Annual Holiday Prayer
“There are no strangers here; only friends you haven’t yet met.” – William Butler Yeats
“God, help us remember that the jerk who cut us off in traffic last night is a single mother who worked nine hours that day and is rushing home to cook dinner, help with homework, do the laundry and spend a few precious moments with her children.
“Help us to remember that the pierced, tattooed, disinterested young man who can’t make change correctly is a worried 19-year-old college student, balancing his apprehension over final exams with his fear of not getting his student loans for next semester.
“Remind us, Lord, that the scary-looking bum, begging for money in the same spot every day (who really ought to get a job!) is a slave to addictions that we can only imagine in our worst nightmares …
“Help us to remember that the old couple walking annoyingly slowly through the store aisles and blocking our shopping progress are savoring this moment, knowing that, based on the biopsy report she got back last week, this will be the last year that they go shopping together.
“Father, remind us each day that, of all the gifts you give us, the greatest gift is love. It is not enough to share that love with those we hold dear. Open our hearts not to just those who are close to us, but to all humanity. Let us be slow to judge and quick to forgive, show patience, empathy and love.
Amen.”
Warmly,
Jeff Baugus
(623) 243-1214
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