Arizona provides two generous tax credits to taxpayers who make contributions to two types of charitable organizations:
1) The Arizona Charitable Tax Credit allows you to give up to $400 ($800 for couples filing jointly) to a qualifying agency that helps the working poor in Arizona and potentially have it cost you nothing!
2) The Arizona Charitable Foster Care Tax Credit allows you to give up to $500 ($1,000 for couples) to a qualifying foster care agency, such as Mesa United Way’s Helen’s Hope Chest, and subtract that amount from your state income tax bill.
You may give up to the limits to both the Charitable Tax Credit and the Foster Care Tax Credit, and as long as the donations are made by April 15, 2017, you may claim the credits on your 2016 tax return.
To benefit from the credit(s) in the current year, you must have an Arizona liability of at least the amount of your donation(s). If your Arizona tax liability is less than the credit this year, you may carry the credit forward.
If you’re participating in a Mesa United Way pledge campaign in your workplace, the pledge form allows you to specify tax-credit donations.