How to claim a Charitable Tax Credit?
In Arizona, taxpayers do not need to itemize deductions to claim a tax credit for qualifying contributions. You can use Arizona Dept. of Revenue Form 321 to report your donation and include it with your state income tax return. Any nonrefundable individual income tax credits must also be totaled on Form 301. Our Qualified Charitable Organization code is 20311. The credit will then be applied to your tax liability, reducing the amount of tax owed.
It's important to note that tax credits may have certain restrictions and qualifications, so taxpayers should check with the Arizona Department of Revenue or consult a tax professional to understand the specific requirements and limitations of the credit they are claiming. It's also important to note that credits can be carried forward to future years if the amount of credit exceeds the tax liability in the year it was claimed.
Frequently Asked Questions
If you give above your threshold amount (which is different for everyone as it depends on your state tax liability), that amount cannot qualify for the tax credit. However, Gospel Rescue Mission is a 501c3 charitable organization, and all donations are tax-deductible and can be used when filing your federal tax return.
Yes! There are a number of Qualified Charitable Organizations that participate in the tax credit. You may give to one or to multiple charities and every dollar amount, up to $400/$800, depending on how you file, and your liability is eligible for the dollar-for-dollar tax credit.
Yes! The beauty of the tax credit is there are multiple types of organizations that qualify, and the amounts vary. You can actually give up to $400/$800 to a QCO (Qualified Charitable Organization) AND give the maximum allowable amount toward private education, public education, and a Qualified Foster Care Organization (QFCO). In Arizona, we get to choose exactly where our taxes go.
The best way would be to speak with your tax advisor.
The deadline to give for your current filing year is April 18, 2023 (the day tax filing is due). This allows you to give toward Gospel Rescue Mission and receive a dollar-for-dollar credit against state taxes owed for your current filing year. If, for instance, you are filing your 2022 tax return in the spring of 2023, you may still give for the 2022 tax year against your tax liability and receive a dollar-for-dollar credit against state taxes owed.
If you are filing your taxes and want that donation to be eligible, you will have to give by the date of filing to be eligible for the tax credit. "If you would like your donation to be spread over a year by giving monthly, select 'Make this a recurring gift''. Then choose the 'Other' selection for the Gift amount and enter $34 (if filing singly) or $67 (if filing jointly).