Feel free to visit my website at http://www.davidasnydercpa.com and call me at 928-445-0104 x9 with any business or tax issues. Remember if you or someone you know needs any type of tax return, an audit, review or compilation or you are about to retire or change your vocation or expand and need a business valuation; please see me so that I can do those engagements for you. Here are the tax credits for 2017:
- Charitable Organization/Working poor tax credit – $800 married filing jointly, $400 for individual taxpayers or other status. (Prescott Sunrise Lions Club is an example of who to contribute too) You have until April 17, 2018 to do the 2017 tax credit.
- Arizona Military Family Relief Fund – $400 married filing jointly, $200 for individual taxpayers or other status. (Go Online to utilize this tax credit, it is so important to help the families of Veterans). This credit needs to be done by December 31, 2016 and even earlier since it has a cap that is generally fully funded by October 31.
- Public Schools – $400 married filing jointly, $200 for individual taxpayers or other status (Including to Future Business Leaders of America FBLA) You have until April 17, 2018 to do the 2017 tax credit.
- School Tuition Programs – $2,182 married filing jointly, $1,091 for individual taxpayers or other status (Sacred Heart, Primavera. These are private schools that get little to no funding from the state). You have until April 17, 2018 to do the 2017 tax credit.
- Foster Care Tax Credit – $1,000 married filing jointly, $500 for individual taxpayers or other status’. (One of the organizations for this tax credit is CASA). You have until April 17, 2018 to do the 2017 tax credit.
So a potential total of $4,782 for married filing jointly filers, and $2,391 for other status tax filers.
If you are married filing jointly and owe $4,782 to the state of Arizona, and paid $4,782 to organizations related to these tax credits, then your tax is zero on the Arizona tax return because these are applied dollar for dollar against that tax liability. You are going to pay the money anyway, so why not keep that money local and to places that you choose.
Also, if your only owe $2,000 to Arizona and you paid $4,782 to these tax credits, then the excess of $2,782 can
be carried forward up to 5 years. You do not get the tax credits back, but you do get to carry them forward.
They also are deducted on your federal tax return as a charitable contribution, but how much that helps you
on your federal return is determined by your effective tax rate and other factors. If you wait until April 17, 2018 to take advantage of the tax credits, it will not carry to your federal return as a 2017 charitable deduction.
Please tax advantage of these tax credits to not only help your on tax situation, but to help the local community organizations that you can monitor to make sure they continue to be your choices in the future. Plus they help families and kids.
Please come and see us for all your accounting and tax needs.
If you need further information on these tax tips, please call me at 928-445-0104 x9 or contact me at firstname.lastname@example.org.