Tax time can help Sun City charities

Arizona taxpayers have a chance to help charitable organizations and their local schools while lowering their tax liability at the same time.

There are four 2023 Arizona state tax credits that do not expire until April 15, said Stewart Ramsey, board president of the Sun City Community Assistance Network. These tax credits are available to Arizona residents who pay state income taxes. The credits permit taxpayers to give their money to a charity or a school instead of paying the money to the state of Arizona in the form of taxes.

There is a dollar-for-dollar income tax credit for qualifying charitable organizations that have been approved for this credit by the state of Arizona. A list of more than 1,000 qualifying charities can be found on the Arizona Department of Revenue website, azdor.gov. The maximum credit allowed is $841 for married and $421 for single. Use Form 321 to claim this credit.

Ramsey recommends four local charities and their five-digit codes that are approved as Qualified Charitable Organizations: Sun City Community Assistance Network, 20402; Valley View Community Food Bank, 20405; Northwest Valley Connect. 20817; and Sun City Home Owners’ Foundation, 22263. He said he believes the four are the only Sun City charities on the list.

“Schools, both public and private, can still award credits and you can get that deducted from your tax bill,” he said.

State taxpayers can make a contribution directly to a public school in the state of Arizona for the support of eligible activities and receive a dollar-for-dollar state income tax credit. The maximum credit allowed for this donation is $400 for married and $200 for single. Credit can be claimed on Form 322.

The Private School Tuition Organization category provides scholarships or grants to students who attend nongovernmental primary or secondary schools located in Arizona. Also included are preschools that offer services to students with disabilities. A list of qualifying charities can be found on the Arizona Department of Revenue website. The maximum individual credit is $655 for single taxpayers and $1,308 for taxpayers filing a joint return. This credit can be claimed on Form 323.

There is a dollar-for-dollar income tax credit for donations to Qualifying Foster Care organizations that provide basic needs to individuals in the foster care system. A list of qualifying charities can be found on the Arizona Department of Revenue website. The maximum credit allowed is $1,051 for married and $526 for single. Use Form 352 to claim this credit.

“People who owe Arizona state income taxes can take advantage of not just one of the above credits, but all of the above credits; and they can do so until April 15,” Ramsey said.

All tax credits are non-refundable, which means they can only be used to offset taxes owed, not to increase the amount of a refund.

They are not an itemized deduction so they can still be claimed even when using the 140EZ form, Ramsey said.

For more information about the these tax credits, consult the Arizona Department of Revenue website and the Arizona Department of Veteran’s Services website at dvs.az.gov.

Sun City CAN provides tax assistance services at their offices, but availability is limited and fills fast, Ramsey said.

Appointments can be made by calling 623-933-7530 or visiting their office at 10195 W. Coggins Drive from 8 a.m. to noon Monday-Thursday.