YOUR MONEY. YOUR CHOICE.
THE ARIZONA TAX CREDIT PUTS THE POWER OF GIVING IN YOUR HANDS.
Did you know that the Arizona tax credit for charitable donations allows YOU to choose where you money goes? Now that you know - we hope you'll consider Hope for Addiction as your AZ tax credit choice.
Your AZ Tax Credit Donation helps to fund Freedom House and Liberty House.
How does the AZ Tax Credit Work?
Dollar-for-dollar for the charity YOU choose
The Arizona Charitable Tax Credit gives taxpayers a choice in how and where their tax dollars are allocated. It won't cost you a penny to donate $421 or $841 to give a single mom and her kids a new life! Donate $800 - provide a safe home for a single mom and her children, get $800 credit on your taxes. Win, win, win!
Your tax credit provides:
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Safe home to start a new life
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Supports, tools and plan to move forward
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Addictions/Trauma counseling
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Parenting Classes and Individualized Parent Plans with practical application
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Life Skills
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and much more, based on individual needs
For example: a married taxpayer makes a $800 donation to an eligible Qualifying Charitable Organization. The taxpayer then claims the maximum allowable credit for these contributions, reducing their state tax liability, dollar - for - dollar.
This taxpayer has effectively redirected $800 of their State tax payment from the State’s general fund to the charitable organization of their choice. The Arizona Charitable Tax Credit shifts control away from the State and gives individuals the power to determine which deserving organizations will receive tax revenue. Taxpayers themselves can direct tax dollars to charities whose services they believe provide the most value to their local communities.
Donations for 2023 tax credit may be made until April 15, 2024. For more information about the Arizona Tax Credit, visit the Arizona Department of Revenue tax credit page
AZ Tax Credit FAQ's
HOW IS THE TAX CREDIT DIFFERENT THAN A DEDUCTION?
A tax credit reduces an individual’s (or a married couple's) tax liability (or the total amount of tax debt owed to the government) on a dollar-for-dollar basis. For every dollar claimed as a tax credit, the tax obligation is reduced by a dollar. In contrast, a tax deduction reduces an individual’s taxable income. For every dollar an individual claims as a tax deduction, their taxable income is reduced by a dollar. Based on the calculation from their income bracket, the individual pays a tax on the amount left over after deductions are subtracted.
WHAT IS THE AZ TAX CREDIT?
The amazing state of Arizona recognizes the benefits of charitable organizations that serve the under-privileged. Arizona allows you to take a dollar-for-dollar credit on your state taxes when you donate up to $400 for single, heads of household, and married filing separate filers, or $800 for married couples filing jointly to a qualified organization.
I ALWAYS GET A REFUND, CAN I STILL TAKE THE CREDIT?
Most people still have a liability to pay. If you receive a refund, you can still participate and you will receive your donation back. For example: You are married and owe $1,000 in Arizona personal income tax. You've had $1,300 withheld for AZ taxes from your paychecks this year. So your typical refund is $300. You can make an $800 tax credit donation to Hope for Addiction and claim it as a credit on your AZ tax return. The state will credit the $800 donation as paid toward your tax liability and refund $1,100 to you ($300 + $800).
I TOLD MY TAX PREPARER TO TAKE THE CREDIT. DO I NEED TO DO ANYTHING ELSE?
Your accountant or tax filing software does not direct your taxes on your behalf. You must make the gift directly to Hope for Addiction before April 15 in order to qualify for the tax credit. It's easy! Click the "Give Your Tax Credit Here" button on this page.
WHAT IF I ALREADY TAKE THE SCHOOL OR FOSTER CARE CREDIT?
This tax credit is allowed IN ADDITION to the Education Credit and the Foster Care Credit, so you don’t have to choose, you can contribute to all three, up to your tax liability. You can share the love!
WHEN DO I NEED TO GIVE MY DONATION IN ORDER TO TAKE THE CREDIT?
You must make your donation on or before April 15, 2024 for your donation to be applied to the 2023 tax year.
DO I NEED TO MAKE MY DONATION ALL AT ONE TIME?
No, the tax credit is for your total giving, so any Arizona resident can take advantage of the tax credit. If you prefer to give monthly, quarterly or in multiple smaller gifts, all donations count toward the tax credit, up to the allowable credit or your tax liability. A year end statement will give your total giving.
HOW DO I CLAIM THE CREDIT WHEN I FILE MY TAXES?
Its easy! Simply include AZ Form 321. See sample HERE. For more information about the dollar-for-dollar tax credit, visit the Arizona Department of Revenue website HERE.
DO I NEED TO ITEMIZE TO TAKE THE CREDIT?
No. You can use the short form and still claim the credit. Simply include AZ Form 321 when you file.