Did you know you can help Arizona teens in foster care? Tax credits make this EASY!

Arizona Tax Credit

Because of the Arizona Charitable Tax Credit, you are able to redirect your state tax dollars to Chandler T.R.A.C.

This is equivalent to  FREE  money and is one of the easiest ways to contribute!

Click on the donate button above to donate today. Follow the quick, easy steps to make your donation by April 15th, 2018. Any donation amount up to $1,000 ($500 if single) will be a tax credit for your 2017 Arizona state tax return.

Note: This opportunity is a TAX CREDIT which is a dollar-for-dollar reduction of your taxes. This is NOT a TAX DEDUCTION, which simply lowers your taxable income. Consult your tax adviser on claiming the tax credit on AZ Form 352.

There are several popular credit programs, including:

  1. Contributions to Qualifying Charitable Organizations
  2.  Contributions to Qualifying Foster Care Charitable Organizations 
  3. Public School Tax Credit
  4. Private School Tuition Tax Credit

All tax credits can be utilized each year; Chandler T.R.A.C. falls under number two.

Major Changes in 2016 to the AZ tax credit laws!
  • Donations to Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations are claimed as separate credits with separate limitations for each. In the past, the limits for the two types of organizations were combined into one.
  • The maximum credit limits have increased.
    • Qualifying Charitable Organization Limits: $400 single / $800 married
    •  Qualifying Foster Care Charitable Organization: $500 single / $1000 married 
  • Contributions can be made until April 15th of the following year. Previously, all contributions for the given year were due by December 31st. There is now more time to make contributions, just like traditional deductions.
  • The Foster Care Credit form is now separate (Form 352). There is now Form 321 for regular organizations, Form 352 for foster care organizations, and Form 301 containing a summary of all credits taken.

FAQs

Arizona Charitable Tax Credit

What is the difference between a tax credit and a tax deduction?

A tax deduction is what most people think of when it comes to writing something off on their taxes. Deductions lower your taxable income, so the amount you receive back is just a fraction of the deduction (equal to the percentage of your marginal tax bracket).

A tax credit, however, is a dollar-for-dollar reduction of your income tax liability. That means a $1,000 tax credit saves you exactly $1,000 in taxes. In other words, the state of Arizona pays you back 100% of your donation, making the donation at no-cost to you.

Is Chandler T.R.A.C. a Qualifying Foster Care Charitable Organization?
No, Chandler T.R.A.C. is not a qualifying organization. However, Hope & A Future, an organization we partner with, is certified by the Department of Revenue as a Qualifying Foster Care Charitable Organization. When you donate through the link on this website, donations are made to Hope & A Future but reserved for Chandler T.R.A.C. When it comes time to submit your tax return, you will report Hope & A Future as the Qualifying Organization instead of Chandler T.R.A.C. Through our partnership, we are able to take advantage of this amazing opportunity the State of Arizona has afforded us.
How much can I claim for the credit for contributions to Qualifying Foster Care Charitable Organizations?
Married taxpayers can contribute up to $1,000 and single taxpayers can contribute up to $500 to qualifying foster care charitable organizations. Donations to non-foster care organizations are an entirely separate credit and don’t count against what taxpayers can give to foster care organizations. The limits for non-foster care qualifying organizations are $800 and $400, respectively.
How do I claim the credit for contributions to Qualifying Foster Care Charitable Organizations?
You report the name of the Qualifying Foster Care Charitable Organization (Hope & A Future) you donated to as well as the dollar amount of your donation on Form 352. You must also total all your Arizona tax credits on Form 301. Non-foster care credits are still reported on Form 321.
What is the period for making eligible contributions?
Beginning with the 2016 tax year, credit eligible contributions made to a Qualifying Charitable Organization or Qualifying Foster Care Charitable Organization that are made on or before April 15th (the 15th day of the fourth month following the close of the taxable year) may be applied to either the current or the preceding taxable year and is considered to have been made on the last day of that taxable year.
Can I also take advantage of other State tax credits or donate to more than one qualifying charity?
Yes. Donating to Hope & A Future and designating Chandler T.R.A.C. does not limit your ability to give under other Arizona tax credits, such as the private and public school tax credits or to other non-foster or foster care charities. Each credit has separate limits and you can give and benefit under all Arizona tax credits!
Do I qualify for the credit?
You must file an Arizona tax return to qualify for the credit and you are limited only by your tax liability. All credits combined cannot reduce your tax liability below $0. You do not have to itemize your deductions to qualify.
Do I have to itemize deductions to claim the credit?
No. Starting with the 2013 tax year, you do not have to itemize deductions to claim a credit for contributions to a Qualifying Charitable Organization.
Do I qualify for the credit if I generally get a refund on my returns?
Most likely, as the tax credit reduces your overall state tax liability and is not impacted by your tax withholding during the course of the year. If you withhold more than your tax liability, you will end up with a refund; likewise, if you withhold less, you will owe. Regardless of whether you owe or get a refund, a tax credit will dollar-for-dollar reduce your tax liability, giving you either a bigger refund or lessening what you owe.
What happens if I don’t owe taxes at the end of the year?
If you have no Arizona tax liability for the current year, or if you exceed your tax liability with your contributions, you may carry the tax credit forward for up to five years.
How do I know which organizations are eligible for my donation?
You can view the listing of Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations on the Department of Revenue’s website at any time. Hope & A Future is listed under Qualifying Foster Care Charitable Organizations (QFCO).
Do I claim my charitable contribution as a tax credit or a deduction?
If the organization, e.g. Hope & A Future, you contribute to is considered a Qualifying Foster Care Qualifying Charitable Organization, you may claim a tax credit. Donations made to organizations not listed on the department’s published website are typically allowed as a deduction only. You cannot claim both a deduction and a credit for the same charitable contribution on your Arizona return.
Can I claim any portion of my contributions to Qualifying Foster Care Charitable Organizations as credit for contributions to a Qualifying Charitable Organization?
No. Donations to Qualifying Foster Care Charitable Organizations (QFCO) will be claimed on Arizona Form 352. A contribution to a QFCO does not qualify for, and cannot be included in, a credit claimed on Form 321 for contributions made to a Qualifying Charitable Organization.
Do my contributions to Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations influence the amount that can be claimed for each credit?
No. Beginning with the 2016 tax year, donations to Qualifying Charitable Organizations and donations to Qualifying Foster Care Charitable Organizations will be claimed as separate credits with separate limitations for each.
Where is the Working Poor Tax Credit?
What was formerly known as the Working Poor Credit is now officially known as the Credit for Donations made to Qualifying Charitable Organizations. This change was made in 2013 to reflect the expansion of the credit to include foster care organizations.
Is this the same as the Credit for Contributions to Qualifying Charitable Organizations?
This is a similar credit and until 2016 they were grouped together. However, starting in 2016, contributions to Qualifying Foster Care Charitable Organizations are separate with different contribution limits. Taxpayers are able to take advantage of both opportunities.
Is this the same as the school tax credit?
This is a similar credit as the School Tax Credit. Taxpayers are able to take advantage of both opportunities.

Other ways to donate

What if I am from another state and would like to make a donation?

The best way to make a donation is by writing a check payable to Crossroads Nazarene Church and write “T.R.A.C. Donation” in the memo. Send checks to Crossroads Nazarene Church 2950 W. Ray Rd. Chandler AZ. 85224. You will receive a  year-end tax statement from Crossroads for your tax records to receive a tax deduction.

You can certainly also use the donate button above to donate to us with a credit card through Hope & A Future      and  designating Chandler T.R.A.C.; however, it will be a traditional tax deduction instead of a tax credit since you won’t be filing an Arizona tax return.

What if I want to give more than the $1,000/$500 tax credit limit?

By all means please do!!! The best way is to make the tax credit donation in its full amount by clicking on donate,  then write a check for the remaining balance you would like to donate to Crossroads Nazarene Church. Mail to Crossroads Nazarene Church 2950 W. Ray Rd. Chandler AZ 85224. Please write T.R.A.C. in the memo. You will receive a year-end tax statement from Crossroads for your tax records to receive the tax deduction.

You can certainly also use the donate button above to donate the entire amount with a credit card; however, the donation amount above the tax credit limit will be considered a traditional tax deduction.

What if I want to give by check?

If you are from out-of-state then please follow the instructions from the question above regarding out-of-state donations.

If you will be filing an Arizona tax return and want to take advantage of the state tax credit, then you’ll need to write the check to Hope & A Future and  designating Chandler T.R.A.C. since they are the qualifying foster care charitable organization that we partner with. Contact us and we’ll get you the appropriate information so that you can take advantage of the tax credit and still contribute to our camp.