You may have heard about the Arizona Working Poor Tax Credit and you may have thought it was too good to be true. Well, we are here to tell you it’s just as good as it sounds. If you donate to a Qualifying Charitable Organization you may take a credit for your donation on your Arizona state income tax return for up to $200, if filing single and up to $400, if filing jointly.
What follows are three of the biggest myths that surround the tax credit, debunked!
1. If I take the credit on my Arizona tax return, then I can’t get a deduction on my Federal tax return.
WRONG. Your donation to St. Vincent de Paul, a Qualifying Charitable Organization, for up to $200 if filing individually or $400 if filing as a married couple, can be claimed as a deduction on the Federal tax return and as a credit on the Arizona tax return. However, an adjustment has to be made so the donation is not considered both a deduction and a credit on the Arizona tax return.
2. If I donate to St. Vincent de Paul, then I have to receive a special form from them in order to take the credit.
WRONG. What you will need is a written receipt from St. Vincent de Paul that shows the date of the donation, the donation amount and that there were no services or goods provided for the donation. That is all you need from us. The forms you need to take the credit can be found on the Arizona Department of Revenue’s website. In fact, you do not have to donate the whole amount at once. Cumulative donations throughout the year may be taken as credit for up to the limits listed above.
3. If I take the Working Poor Tax Credit, then I can’t take other credits such as credit for donations to School Tuition Organizations.
WRONG. The Working Poor Tax Credit can be taken in addition to any other applicable credits the donor is eligible to take.
Please remember that we are not tax advisers and you should consult your tax adviser or the Arizona Department of Revenue’s website at www.azdor.gov for more information.
We hope you consider this opportunity to “take the credit” while helping our neighbors in need. Thank you!
To donate over the phone, call 602.266.GIVE (4483). Click here to donate online.
