*As fiduciary advisors, we always prioritize your best interests. However, for specific advice tailored to your situation, please consult your tax advisor or CPA.
As a tax-credit state, Arizona offers plenty of opportunities, and we want to make sure you have the information needed. You may be able to direct your state tax dollars to a qualified charity rather than just writing the check to the state.
A helpful website to understand these specific Arizona credits available is AZ Tax Credit Funds.
Arizona Charitable Tax Credit
Two tax credits for individuals donating to charities: one for Qualifying Charitable Organizations (QCO) and another for Qualifying Foster Care Charitable Organizations (QFCO), both claimable on state income tax returns.
Public School Tax Credit
Donate to an Arizona public or charter school for extracurricular activities and receive a dollar-for-dollar credit.
Private School Tuition Organization (STO) Tax Credit
Donate to a School Tuition Organization and receive a dollar-for-dollar credit.
Other Valuable STO Opportunities:
Contribute to the Arizona Military Family Relief Fund and receive a dollar-for-dollar credit.
Don’t Forget to Ask Your Tax Professional About These Ones, as Well:
Mortgage Interest: If you have a mortgage on your home, you may be able to lower your taxable income by deducting the interest paid.
Home Equity Loan Interest: If you took out a home equity loan or line of credit for home improvements, you may be able to deduct the interest paid on that loan.
Discount Points: If you purchased discount points to lower your mortgage interest rate, you may be able to write off that cost as tax-deductible.
Property Taxes: Homeowners can deduct a limited amount of property taxes.
Necessary Home Improvements: Some home improvements, especially those made for medical or accessibility reasons, may be deductible.
Home Office Expenses: If you run a business from your home, you might be able to deduct some of the costs for maintaining your home office.
Capital Gains: If you sell your home for a profit and have lived there for at least 2 out of the last 5 years, you could be eligible for capital gains tax breaks.
We hope this information is valuable in this coming tax season! As always, we are here to help.
