ARIZONA TAX CREDIT
Make a difference in the lives of people with disabilities and reduce your Arizona State Income tax!
You can make a gift of either $400 if you file taxes as 'single' and 'head of household' or as 'married filing separate', or $800 as 'married filing joint' to Linkages and, at the same time, reduce your tax liability to the State of Arizona by that amount! It’s easy and you can make a big difference in 'linking' individuals with disabilities to employment. Here’s how:
Linkages qualifies as an eligible charity to whom contributions may be made and the donor receives a dollar for dollar credit (not a deduction) to their Arizona State Income tax at the time they file their taxes. In order to qualify, your donations must be received by Linkages no later than April 15, 2017. (NOTE: Businesses are not eligible for this tax credit).
Here are some answers to questions you may have about making a gift to Linkages and receiving a Tax Credit!
Why does Linkages qualify for the Charitable Tax Credit? The qualification is based on our spending at least 50% of our total operating budget on services to Arizona residents who are considered working poor.
How much can I donate? An individual may donate up to $400 and those filing jointly may donate up to $800 and receive a tax credit against their Arizona State Taxes. That means, the amount you donate is subtracted from your total Arizona State Income Tax liability, and you are supporting Linkages’ mission at the same time!
How do I qualify for Charitable Tax Credits? In order to receive the tax credit, you must itemize on your Arizona Income Tax form. You don’t have to itemize on your Federal Tax form to qualify for this tax credit.
Is there a baseline year that qualifies me as eligible to take the Tax Credit? As of September 2009 the baseline year provision was removed so a donation to a qualifying charitable organization is the only requirement.
What is the difference between a tax credit and a tax deduction? A tax credit is more beneficial than a tax deduction. A tax credit reduces your Arizona State Income taxes-dollar for dollar. A tax deduction reduces the taxable income upon which your taxes are calculated.
How do I know Linkages qualifies for the credit under this program? Qualifying organizations are required to send the Department of Revenue a self-certification letter stating that they meet all qualifying criteria. The Department in turn publishes a list of self-certified organizations. You can also request a list from Department of Revenue in Phoenix at 602.255.3381 or you can go to the Arizona Department of Revenue website at www.azdor.gov.
Can I take the Charitable Tax Credit if I take the School Tax Credit? Yes, they are separate credits and you are allowed to take advantage of both.
Does the tax credit also apply to my federal income tax returns? No. The Charitable Tax Credit applies only on your Arizona State income tax. However, you may be able to claim a federal tax deduction for the amount donated.
Please Note: Linkages is not a tax adviser. Please contact a qualified tax adviser for advice on your personal tax situation.