Increased Arizona Income Tax Credits for 2016

- Thursday, October 13th, 2016

 

 

Want to potentially reduce the amount of taxes you pay to the state of Arizona? There have been some dramatic increases in the amount taxpayers may contribute to Qualifying Charitable Organizations (formerly known as the Working Poor Tax Credit) and Qualifying Foster Care Organizations for 2016. What is also new for 2016 is that the Foster Care credit is allowed as its own credit separate from the Qualifying Charitable Organizations.

 

1.      Qualifying Charitable Organizations (formerly known as the Working Poor Tax Credit).  Increased from $400 to $800 Married filing jointly.  Increased from $200 to $400 Single taxpayers or heads of household.

 

2.      Qualifying Foster Care Organizations.  $1,000 Married filing jointly.  $500 Single taxpayers or heads of household.

 

The following credits are still in effect for 2016:

 

3.      Public Schools.  $400 Married filing jointly.  $200 Single taxpayers or heads of household.

 

4.      Private School Tuition Organizations.  $1,083 Married filing jointly (if filing separately, each spouse may only claim 1/2 of the credit).  $542 Single taxpayers or heads of household.

 

5.      Certified School Tuition Organizations.  $1,083 Married filing jointly (if filing separately, each spouse may only claim 1/2 of the credit).  $542 Single taxpayers or heads of households.

 

6.       Arizona Military Family Relief Fund.  $400 Married filing jointly.  $200 Single taxpayers or heads of household. This credit is on a first come, first serve basis and has a $1 million cap. As of September 26, the donation tally was at $443,448.