Charitable Tax Credit allows you to support Mesa United Way even on a tight budget

How would you like to help people in need, become a Mesa United Way “Leadership Giver,” and have it cost you nothing? The Arizona Charitable Tax Credit allows you to give up to $200 ($400 for couples) to a qualifying agency that helps the working poor in Arizona, such as Mesa United Way, and you can claim that amount as a dollar-for-dollar credit on your itemized Arizona tax return.

Here's how it works. If you donate to Mesa United Way before midnight on Dec. 31, 2011 (cash, check, or credit card) and indicate the contribution is being made under the Arizona Charitable Tax Credit, you will get a dollar-for-dollar credit – that's much better than a deduction – on your Arizona income tax return. A credit applies directly against your tax liability. In other words, you get to direct where that part of your state tax money goes. 

In order to benefit from the credit in the current year, you must have an Arizona liability of at least the amount of your donation.  If you don’t have an Arizona tax liability this year, or enough to use all of your credit, you may carry the credit forward for up to five years.   In addition, you must itemize on your Arizona state tax in order to claim this credit.   You do not have to itemize on your federal tax return.

Additionally, if you itemize on your Federal Income Tax return, your donation is a charitable deduction. Depending on your tax bracket, that may mean that you could donate an additional $50 ($100 for couples) with no net cost to you. If you’re now at $500, you just became a “Leadership Giver”!

For those of you who like to see the math, here it is for a couple:

To learn more about the Arizona Charitable Tax Credit, contact your tax advisor or the Arizona Department of Revenue at 602-255-3381 or toll free 1-800-352-4090.