Arizona Targeted Tax credits
Charlene M. Ives, CPA, PC
Most every taxpayer in Arizona will need to pay Arizona income taxes. One way to pay these taxes is through withholding on the paycheck. Another way is for self employed taxpayers who pay their taxes by making estimated payments.An alternative way to pay your Arizona income taxes is by using the targeted tax credit programs. These programs provide a way for Arizona taxpayers to direct their tax dollars to specific purposes. There are three targeted tax credit programs:
First, taxpayers filing a joint return for 2008 can get a credit for every dollar up to $400, donated to public school extracurricular programs.
Second, taxpayers filing a joint return for 2008 may get a credit for every dollar up to $1000, donated to private shcool tuition organizations.Single filers may contribute up to $500.
Third, taxpayers may get a credit for every dollar up to $200, donated to organizations that assist the working poor.
All three tax credit programs can be used in a single year. Contributions must be made by December 31. There are provisions for carrying over unused credits. Taxpayers can receive charitable contribution deductions for these donations on their Federal tax returns. Many filers receive AZ refunds generated by funding these credit programs.
Check these websites for more details and information:
www.azscholarships.org
www.acsto.com
www.revenue.state.az.us
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