Many people dread tax time. The reminder of finances and necessary payments can seem exhausting. In order to make this time of year a bit less daunting, consider taking advantage of Arizona’s Charitable Tax Credits. Giving back to your community can make doing your taxes feel less like a burden. Here’s some of the basic information you need to know before moving forward.
The Arizona Charitable Tax Credit is what is known as a nonrefundable income tax credit. It presents itself as a two-fold deal, offering credits for Qualifying Foster Care Charitable Organization (QFCOs), as well as Qualifying Charitable Organizations (QCOs). According to Phoenixchildrensfoundation.org, the tax credit for giving to Qualifying Charitable Organizations dates back to 1998. Back then, it was referred to as the Working Poor Tax Credit.
When it comes to QCOs, an individual may match their tax credit dollar-for-dollar up to $400. Those married filing jointly may match their tax credit dollar-for-dollar up to $800. When it comes to QFCOs, the credit is set at a slightly higher maximum. Individuals may donate up to $500 and those married filing jointly can donate up to $1,000. You aren’t limited to either a QCO or a QFCO!
QCOs offer essential needs to those living in Arizona who get temporary assistance for needy families (TANF) benefits. Additionally, QCOs help residents of Arizona who may be low-income or supporting children suffering from a serious illness. A QFCO does this, as well, but they have another requirement. They have to spend at least half of their budgets on services for children that have been placed in either child welfare agencies or foster care homes. Paz de Cristo qualifies as a QCO for the work that we do to assist those in the community that go without food, clothing, or hygiene products. We offer food boxes and more!
Many people have the misconception that they have to carry out their charitable donations by the end of the calendar year. In reality, the deadline to make a donation to a QCO or QFCO for this tax year is April 15, 2022.
To learn more information about how you can use your tax dollars to benefit a tax deductible charity, reach out to our working poor charity today. The professionals at Paz de Cristo would be happy to get you on your way to a more fulfilling tax season. If you don’t have the money to donate, reach out to learn about volunteer opportunities!