Accountant

Phoenix CPA | State Tax Credits

Did you know you can direct how your state income tax dollars are spent? There are various state income tax credits available to residents of the state of Arizona. These credits are all non-refundable which means if you don’t owe any state income tax, these credits will not help you.

  • Public School Tax Credit – up to $200 for single, head of household and married filing separate taxpayers or $400 for married filing joint taxpayers.  To obtain a listing of qualifying public or charter schools visit http://ade.az.gov/edd/. Payments must be made to a qualifying public school by December 31, 2014 to be eligible for a 2014 tax credit.
  • School Tuition Organization Credit – Up to $528 for single, head of household and married filing separate taxpayers and $1,056 for married filing joint taxpayers.  To obtain a list of qualifying school tuition organizations please visit http://www.azdor.gov/LinkClick.aspx?fileticket=4LCbUS0EE4w%3d&tabid=240. Payments must be made to a qualifying school tuition organization by April 15, 2015 to be eligible for a 2014 tax credit.
  • Additional School Tuition Organization Credit – If a taxpayer has already maximized the original school tuition organization credit, they are allowed an additional credit of up to $525 for single, head of household and married filing separate taxpayers and $1,050 for married filing joint taxpayers. To obtain a list of qualifying school tuition organizations please visit http://www.azdor.gov/LinkClick.aspx?fileticket=4LCbUS0EE4w%3d&tabid=240. Payments must be made to a qualifying school tuition organization by April 15, 2015 to be eligible for a 2014 tax credit.
  • Qualifying Charitable Organizations – Up to $200 for single, head of household and married filing separate taxpayers and $400 for married filing joint taxpayers. To obtain a list of qualifying charitable organizations please visit http://www.azdor.gov/LinkClick.aspx?fileticket=V6hWbHqzqfw%3d&tabid=133.
  • Qualifying Foster Care Charitable Organizations – Up to $200 for single, head of household and married filing separate taxpayers and $400 for married filing joint taxpayers. To obtain a list of qualifying foster care charitable organizations please visit http://www.azdor.gov/LinkClick.aspx?fileticket=O7Jw9R_qhHw%3d&tabid=133.

Again, all of the credits listed above are non-refundable. That means they can only lower and eliminate your tax liablity. If you don’t have a tax liability or if you donate in excess of your tax liability, you do not get the money back in the form of a tax refund so plan accordingly. We recommend contacting us here at Dusseau & Makris, PC, your Phoenix CPA firm if you have any questions on whether these credits are a wise decision for you or not.