Businesses, families and organizations throughout the state have been adversely impacted by COVID-19 — and many Arizonans are asking what they can do to help. Arizonans can make charitable donations to support those in need during this unprecedented time, while earning dollar-for-dollar state tax credits.
Due to the COVID-19 outbreak, the deadline for filing and paying State and Federal income tax has been extended from April 15th, 2020 until July 15th, 2020. However, the deadline for Arizonans to make charitable contributions and qualify for state income tax credit remains April 15th.
Arizona provides two separate tax credits for those who make contributions to charitable organizations:
Additionally, other credits for which taxpayers remain eligible through April 15th are:
The maximum allowable credit to Qualifying Charitable Organizations is $800 for married filers and $400 for single filers, married filing separately and heads of household filers. For Qualifying Foster Care Charitable Organizations, the maximum allowable is $1,000 for married filers and $500 for single filers.
WHAT ARE THE GUIDELINES?
Donations must be made by individuals;
Donations must be made in cash;
And donations must be made to Qualifiable Charitable Organizations or Qualifying Foster Care Charitable Organizations that have been certified by the state of Arizona.
HOW DOES THE PROCESS WORK?
Donate to a certified charitable organization;
Maintain a receipt of your donation to later provide with your tax return;
When the time comes to file, complete the appropriate tax form to claim credit for your donation;
And subtract the eligible amount of your contributions to qualifying charities from your tax liability on your Arizona Form 140.
Last week, Governor Ducey launched the Arizona Together initiative to support Arizonans during the COVID-19 outbreak, connecting individuals and businesses to resources and providing information on volunteer opportunities.
More information can be found at the Arizona Department of Revenue website.