25% of the adult population, that’s nearly 63 million U.S. residents, volunteer their energy, time, and talents to make a difference. Would you like to help people when they are in need? Besides community service opportunities and great volunteer opportunities, you can donate much-needed funds.
There are many ways your funds assist Arizona tax deductible charities like Paz de Cristo. You are allowing them to grow and reach even more people that need help. Monetary contributions bring hope to neighbors in need who struggle with homelessness, hunger, and poverty.
Hundreds of caring people make donations to tax deductible charities. This gives them the ability to receive their money back in the form of a state tax credit when filing their taxes. Arizona’s Charitable Tax Credit is behind this ability. When donating a total of $800 to qualifying charities, you get a state tax credit of up to $800 for those filing jointly.
How does a charitable tax credit work? First, you give a donation to participating charities. Then you simply claim your credit at the time of filing state taxes. Finally, you get money back with a dollar-for-dollar credit of up to $800. If you want to give more, you could qualify for a federal tax deduction.
If you donate more than your maximum amount or your state tax liability, your donation may qualify for a tax credit federal deduction. This is in reference to 501(c)(3) nonprofit organizations. Tax situations tend to be unique. Therefore, it is always wise to discuss and verify deductions with a tax professional.
A tax credit will reduce your tax liability. It acts in a manner that suggests you already paid the taxes owed. If you owed taxes in the amount of $1,000 the donation amount would be deducted from it. You pay the difference if your tax credit was less than what you owe. The maximum allowed state tax credit for Arizona is $400 for individuals and $800 for couples that file jointly.
A deduction, such as tax credit federal deduction, lowers the amount of income in which tax is calculated. This is in consideration of the tax credit federal deduction. Again, you should always speak with a tax professional concerning deductions and tax credits so you get the best legal advice.
It’s a good idea to take advantage of tax credits and deductions while helping out those in need. You are doing your part to make sure those that really need assistance are able to take a positive step forward in life. You are literally feeding, clothing, and empowering people who are struggling. Make your donation to Paz de Cristo today and receive a dollar-for-dollar Arizona tax credit.
