Have you heard of the Arizona Charitable Tax Credit? Maybe you’ve heard of it, but have some questions? We get it – it can be confusing! We are by no means financial advisers and encourage everyone to consult with their tax preparer prior to filing, but here are some simple answers to the most commonly asked questions we hear:
Q: Why is a tax credit better than a deduction?
A: A tax deduction lowers the amount of income you can be taxed on, lowering your tax liability by a certain percentage. But a tax credit is a dollar-for-dollar lowering of the amount of taxes you have to pay. So, if you owe $400 in state taxes and donate $400 to the Flagstaff Family Food Center, you will owe nothing to the state!
Q: What is the maximum contribution?
A: The maximum contribution for an individual is $400 and $800 for married couples filing jointly.
Q: When is the last day I can make my Arizona Charitable Tax Credit Contribution?
A: You must make your donation to a qualifying organization by the time you file your taxes. Tax Day is April 15, 2020.
Q: Is the Flagstaff Family Food Center a qualifying organization?
A: Yes, we sure are! That means that we were vetted by the state to ensure that over 50% of our clients served are below the poverty level and that your generous donation will go towards helping local families in need.
Q: Can I give to my child’s school and the Flagstaff Family Food Center?
A: Yes! Tax credits for contributions to Qualifying Charitable Organizations are in addition to and completely separate from the Public School Activity Tax Credit and Private School Tuition Tax Credit – you can participate in all of them in the same tax season.
You can donate up to $400 to the Flagstaff Family Food Center if filing individually or up to $800 if married filing jointly.
Put your tax dollars to work for families in need in Northern Arizona.
Remember, for every $1 you donate up to the limit, you can get $1 back.