Arizona Working Poor Tax Credit F.A.Q.:
What is the Working Poor Tax Credit?
The Working Poor Tax Credit is a dollar-for-dollar charitable contribution you can give to 501(c)(3) corporations (nonprofits). With Arizona’s Working Poor Tax Credit you can receive a dollar-for-dollar tax credit, up to $200 filing single or $400 if filing a joint return, on your state income taxes while helping the homeless – at no additional cost to you.
What about the baseline year?
As of September 2009, the baseline year provision was removed so a donation to a qualifying charitable organization is all that is required.
What is the difference between a tax credit and a tax deduction?
A tax credit is significantly more beneficial than a tax deduction. A tax credit reduces your taxes, dollar-for-dollar. A tax deduction reduces the taxable income upon which your tax liability is calculated.
How do I know Wings for Women qualifies for the credit under this program?
Qualifying organizations are required to send the Department of Revenue a self-certification letter stating that they meet all qualifying criteria. The Department in turn publishes a list of self-certified organizations. You can request a list from Department of Revenue in Phoenix at 602.255.3381 or by downloading the List of Qualifying Charitable Organizations for 2013.
Can I take the Working Poor Tax Credit if I take the School Tax Credit?
Yes, they are separate credits and you are allowed to take advantage of both.
Does the tax credit also apply to my federal income tax returns?
No. The Charitable Tax Credit applies only on your Arizona State income tax. However, you may be able to claim a federal tax deduction for the amount donated.
Where can I get more information about the tax credit?
You can get more information by visiting the Arizona Department of Revenue website or by calling Taxpayer Assistance at 602.255.3381 or 800.352.4090.
*Please note that Wings for Women is not a tax advisor. Please contact a qualified tax advisor for advice on your personal tax situation.