As the year β and the decade β draw to a close, a grassroots coalition wants to encourage Arizona residents to remember that monetary donations to select local charities may qualify for dollar-for-dollar credits on 2019 state income taxes.
The Arizona Charitable Tax Credit Coalition is comprised of a group of nearly 50 nonprofit organizations that have come together to promote the Arizona Charitable Tax Credits for Qualifying Charitable Organizations and Qualifying Foster Care Organizations.
The charitable tax credit allows a dollar-for-dollar credit of up to $400 for single or head-of-households or $800 for married taxpayers filing jointly on 2019 Arizona income taxes; the foster-care tax credit allows an additional $500 credit for single or head-of-households or $1,000 for married taxpayers filing jointly.
The coalition uses the tagline and website of GiveLocalKeepLocal.org to promote its message about the benefits of supporting local qualifying nonprofits, according to Chairman Scott Matlick.
βThe line βGive Local. Keep Local.β helps to remind people that they have the option to keep their state tax dollars working in the local community. ... You have the opportunity to choose a particular cause that is special to you and keep that money right here in Tucson,β said Matlick, who is also the director of business development for Ronald McDonald House Charities of Southern Arizona, which is among the charitable organizations represented on the coalition.
Matlick emphasized that a diverse group of nonprofits are qualifying charities, ranging from small to large organizations that provide a multitude of services for those of all ages, from infants to seniors.
The charities address needs ranging from disabilities and education to hunger, health challenges and homelessness: A sampling includes The Haven Recovery With Respect, Literacy Connects, Mobile Meals of Southern Arizona, Parent Aid, Sister Jose Womenβs Center and Southern Arizona Legal Aid.
A comprehensive list and information about all Arizona tax credits can be found at azdor.gov/tax-credits/contributions-qcos-and-qfcos.
Educating the public about the details of these organizations and affiliated tax credits is a priority of the coalition, according to Matlick.
βWe know from talking to people that there is still a lot of confusion about the tax credits, Matlick said. βLots of people think that it is too good to be true that you can give $400 or $800 to Qualifying Charitable Organizations and $500 or $1,000 to Qualifying Foster Care Organizations and get potentially 100% of that back in a benefit on your income taxes.
βThe power of the coalition is that we are all chipping in to help get the word out. β¦ It is nonprofits collaborating for the greater good of the community,β he said.
Tax credits often take on significance at year-end, when many people are planning for charitable giving. To that end, the coalition helps to promote details about timelines, including a reminder that monetary contributions to the qualifying organizations made through April 15, 2020, can be applied to 2019 Arizona income taxes.
However, Internal Revenue Service deadlines for federal credits and deductions differ from state deadlines and βmust be made by the end of your tax year,β necessitating that qualifying federal contributions must be made by Dec. 31.
Matlick said the year-end deadline is also important to nonprofits as they plan budgets for the coming year.
βLots of organizations are trying to make sure they meet their year-end fundraising goals so they can keep providing the same services next year. Every donation that comes in by the end of the year helps to ensure that those who need help will receive it,β he said.
