Currently, there are several special Arizona Tax Credit Contribution Programs with new increased limits available for 2021 which should be strongly considered in your annual tax planning. Each of these programs provide a “dollar-for-dollar” Arizona tax credit, meaning that your tax liability is reduced dollar-for-dollar by the amount of your contribution (not to exceed the amount of your Arizona tax liability) for year 2021.
The following chart explains the maximum credits available.
Source: https://hblcpa.com/2021-arizona-tax-credits/
2021 Arizona Tax Credits
|
Maximum Credit |
Single |
Married Filing Joint |
|
Public Schools Credit |
$200 |
$400 |
|
Private School Tuition Credits |
$1,219 |
$2,435 |
|
Credit for Qualifying Charitable Organizations |
$400 |
$800 |
|
Credit for Qualifying Foster Care Charitable Organizations |
$500 |
$1,000 |
|
Military Family Relief Fund |
$200 |
$400 |
|
Total Potential Credits |
$2,519 |
$5,035 |
Special rules apply to individuals who are Married Filing Separate. Your tax credit may be limited to 50% of the donation. Please consult your tax advisor.
For a full list of qualifying organizations, go to https://azdor.gov/tax-credits.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
