Yes, it sounds too good to be true, but it isn’t! No gimmicks, no catch, no downside. The Arizona Charitable Organization Tax Credit program is yours for the taking. Simply put, the program will repay you for your donation to Arizona Autism United (AZA United), up to $400 for an individual and $800 for a married couple filing jointly. This can be a one-time donation or you can divide it into several donations throughout the year.
How much money are we talking about? The Arizona Department of Revenue reported that more than 165,000 Arizona residents contributed more than $68.5 million to Qualified Charitable Organizations in the tax year 2017. That can do a lot of good!
How it Works
Let’s say you make a $400 donation to AZA United, the state of Arizona will take that $400 off your final state tax bill. If your state tax bill for the year is $500, and you donated $400 to AZA United, your state tax bill will be reduced to $100. Without contributing to AZA United (or other qualifying charities), you would still have to pay $500 in Arizona state tax. It all adds up to more money in your pocket and funding that AZA United can use to change lives! Talk about a win-win!
How is a Tax Credit Better Than a Tax Deduction?
A tax deduction reduces your taxable income, which affects the amount of taxes you pay. For example, If you earned $40,000 and donated $500 to AZA United, your taxable income would be reduced to $39,500. If your tax rate is three percent, you would owe $1,185 in taxes.
So, how is that different from a tax credit?
A tax credit is a better deal. Again, if you earned $40,000 have a three percent tax rate, you would owe $1,200 in taxes. A tax credit allows you to subtract your entire $500 donation to AZA United from your $1,200 tax bill. So now that tax bill has been reduced to only $700 in taxes. We can’t speak for anyone else, but who wouldn’t choose a lower tax bill?
How the Tax Program Changes Lives
This program doesn’t only put more of your hard-earned money back in your wallet; it can and does change lives! Yes, that’s an enormous statement, but it’s true. Donations made to AZA United go directly to programs that help Arizona children learn important life skills to succeed in their natural environments.
Imagine not being able to communicate your needs and thoughts. The contribution that saves you money on your state taxes could be the key to helping a person with autism learn how to communicate or access the tools that help them communicate.
It can provide clarity and tangible support for a family who’s just received an autism diagnosis and doesn’t know where to turn or get the help they need to ensure their child has a fulfilling life.
Those are just a few of the many services your financial support enables AZA United to deliver to the community with the money raised through this program and others.
How Can I Take Advantage of the Arizona Charitable Organization Tax Credit?
Generally speaking, unless you’re an accountant, taxes are complicated and frustrating. Taking the Arizona Charitable Organization Tax Credit is easy. Each qualified charity is assigned a QCO code (AZA United's QCO Code is: 20353). Simply download the straightforward tax credit application and send it in with your taxes. You will be asked to enter the code with your donation amount when you prepare your taxes, whether you use a digital platform, such as Turbo Tax, or if you work with an accountant.
A Few FAQs
Do you have to donate the maximum allowed? No, we’re grateful for any amount you can contribute, but remember, the program essentially pays you for your charitable gift, so why not give as much as possible (up to the limit). And of course, you can always make a larger donation, but you will only receive a tax credit for the maximum allowed.
Do you have to itemize your taxes to get the credit? Nope. Even if you take the standard deduction, you can still claim it and see your tax bill reduced—or disappear altogether.
Can I still get the credit if I signed up for recurring or monthly donations? Absolutely! If you are a single individual who makes a monthly contribution of $33, that totals $400 a year, which will be returned to you in the form of credit when you file your taxes.
A Few Caveats and Questions
The tax credit is available only for monetary donations, not in-kind contributions. It also only applies to individuals and married couples (not businesses).
As always, when it comes to your taxes, you should consult with your accountant or tax professional about your particular situation.
The clock is ticking, but there’s still time to take advantage of this wonderful opportunity to help charitable organizations provide much-needed services and support. Per Arizona law, donations made up to April 15 can still be claimed as a tax credit for the previous year! Everybody benefits when you participate in the Arizona Charitable Organization Tax Credit program. We thank you in advance for your support.
Learn more about the Charitable Organization Tax Credit and how to support AZA United