Currently, there are several special Arizona Tax Credit Contribution Programs with new increased limits available for 2019 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).

The following chart explains the maximum credits available (Source: https://hblcpa.com/az-tax-credits-2019/)

Maximum Credit

Single

Married Filing Joint

Public Schools Credit

$200

$400

Private School Tuition Credits

$1,135

$2,269

Credit for Qualifying Charitable Organizations

$400

$800

Credit for Foster Care

$500

$1,000

Military Family Relief Fund

$200

$400

Total Potential Credits

$2,435

$4,869


Note: Due to the recent passage of Arizona Senate Bill SB1217 and SB1216, you can now make these contributions as late as April 15, 2020 and still choose to claim the credit on your 2019 tax return.

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.