A nonrefundable individual income tax credit is available for contributions to Qualifying Charitable Organizations that provide assistance to residents of Arizona who receive Temporary Assistance of Needy Families (TANF) benefits, are low income residents of Arizona, or are children who have a chronic illness or physical disability.

The maximum credit for contributions made to qualifying charitable organizations for 2020 is $400 for single taxpayers and $800 for married taxpayers.  Credit eligible contributions made to a qualifying charitable organization that is made on or before April 15^th may be applied to either the current or the preceding taxable year and is considered to have been made on the last day of that taxable year.  You must designate the tax year for the contribution on the receipt.

If the allowable tax credit is more than your tax or if you have no tax due, you may carry the unused credit forward for up to the next 5 years.

This link will provide you with a list of the Qualifying charitable Organizations.

Certified Charities 2020

An individual nonrefundable income tax credit is available for contributions to Qualifying FOSTER CARE Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are children who have a chronic illness or physical disability, and provide immediate basic needs to at least 200 qualifying individuals in the foster care system.

The maximum credit for contributions made to a qualifying foster care charitable organization for 2020 is $500 for single taxpayers and $1,000 for married taxpayers.  Contributions made to a qualifying foster care charitable organization made on or before April 15^th may be applied to either the current or the preceding year.  The tax year must be designated on the tax credit donation receipt.

If the allowable tax credit is more than your tax or if you have no tax due, you may carry the unused credit forward.

This link will provide you with a list of the Qualifying Foster Care Charitable Organizations.

Certified Foster Care Charities 2020

An individual may claim a nonrefundable tax credit for making contributions or paying fees to an ARIZONA public school for support of qualified activities or qualified programs.  Qualified activities and qualified programs include any of the following:

• Extracurricular activities
• Character education programs
• Standardized testing fees for college credit or readiness offered by a widely recognized and accepted educational testing organization paid "to a public school"
• Preparation courses and materials for standardized testing paid "to a public school"
• The career and technical education industry certification assessment paid "to a public school"
• Cardiopulmonary resuscitation training pursuant to A.R.S. § 15-718.01

In order to claim this credit, you must have a receipt issued by the public school which includes the public school name, school district name and number, your name and address, the amount paid, date paid, and a description of the activity or program being supported.

The credit cannot exceed $200 for a single taxpayer and $400 for taxpayers who are married filing a joint return. The credits may only be used to the extent they reduce your tax liability to zero.  Any unused amounts may be carried forward for not more than 5 consecutive taxable years but not refunded. 

Credit eligible fees paid and contributions made to a public school from January 1 through April 15 of a calendar year may be used as a tax credit on the prior year's tax return.  If you are making a payment between January and April to offset the prior year's taxes, you must specify the tax year.

     This link provides you a list of schools eligible for this credit. 

Arizona Department of Education Qualifying Public Schools

An individual may claim two separate credits for making donations to a qualified school tuition organization for scholarships to private schools. Taxpayers who donate the maximum amount allowed under the Credit for Contributions to Private School Tuition Organizations may make an additional donation to a qualified school tuition organization and claim the additional Credit for Contributions to Certified School Tuition Organization - Individual.

For 2020, the maximum for Credit for Contributions to Private School Tuition Organizations cannot exceed $593 for single taxpayers and for married taxpayers that file a joint return the credit cannot exceed $1,186.  

For tax year 2020, the maximum Credit for Contributions to Certified School Tuition Organizations - Individual, the credit cannot exceed $590 for single taxpayers and $1,179 for married taxpayers that file a joint return. This credit is only available to those individuals that first donated the maximum amount allowed under the Credit for Contributions to Private School Tuition Organizations.

These contributions can be made January 1 through April 15 and be used as a tax credit on the prior year's tax return.  

A receipt must be issued by the private school tuition organization for the contributions made in order for the taxpayer to claim the credit.  The receipt should include the private school tuition organization's name, taxpayer name and address, amount paid, date paid, the tax year for which the taxpayer will claim the credit.

If the allowable tax credit is more than your tax or if you have no tax, you may carry the unused credit forward but it cannot be refunded.

This link will provide you with a list of School Tuition Organizations certified to receive donations for the individual income tax credit.

School Tuition Organizations 2020  

The Arizona Military Relief Fund is administered by the Arizona Department of Veterans' Services. Families of military service personnel can apply for assistance with any financial crisis that may arise due to the death or injury of a military loved one.

Taxpayers who donate not only reap the rewards of helping those in need, but also qualify for a dollar-for-dollar Arizona tax credit. The maximum amount of the credit is $400 for a couple filing jointly, $200 for a single person, or the amount of state tax you owe. 

This charity fund has a $1,000,000 cap for refundable Arizona tax Credits, so it's best to get your contribution in before the Fund reaches this amount.  Once the Military Family Relief Fund reaches $1M in donations, the credit is no longer available and contributions must be returned by the Fund.  Therefore, if you would like to contribute to this Fund, it's best to send your donation in early so you are ensured a credit on your Arizona tax return. 

Follow this link for 2020 donation form

Military Family Relief Fund-2020

The Official Website of the U.S. Social Security Administration.

Do you still have receipts and documents from the turn of the century?  Are you wondering what you really need to keep and for how much longer?  We are asked these questions many times and the answer varies depending on your tax situations.  IRS has compiled Topic Number:305 - Recordkeeping that is designed to help answer your questions.

Have you received a phone call from the IRS or an email demanding payment?  If you have, it is a scam.  IRS has put together a Tax Tip to help you know the telltale signs of a scam.

The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.”  This is even more important this year because of recent changes to the tax law for 2018.  The IRS Withholding Calculator can help ensure you don't have too much or too little income tax witheld from your pay.  

Track your tax refund through the IRS website.