By far the most tax-efficient way to give in Arizona is by taking advantage of the the charitable, foster care, and school tax credit programs.
These credits are better than a deduction—they reduce the amount you owe in state taxes by the amount of your donation, dollar-for-dollar. This means you can make a gift and get 100% of that amount back when you file your taxes. It's like donating for free!
CPLC programs are eligible for three Arizona tax credits, and Arizona Residents can take advantage of all three of them. Families can save thousands on state taxes by maximizing these credits.
A gift to any CPLC program is eligible for the QCO tax credit.
Florence Crittenton--an Arizona organization providing healing and recovery to girls who have endured physical and sexual victimization, chronic neglect, homelessness, poverty, teen pregnancy, drug abuse and more--became a part of the CPLC familia. Gifts to Florence Crittenden are eligible for the QFCO Tax Credit.
CPLC Community Schools provide a quality education and critical resources to vulnerable students facing poverty, homelessness, and other barriers to success.
Unlike a tax deduction, a tax credit directly reduces the amount of taxes you owe to the state, dollar for dollar. This means a donation of $400 can reduce your tax liability by $400 (but it will not increase your tax refund). If your tax is reduced to zero, you can carry the unused credit forward for the next five years. This allows you to donate to programs helping your community and get your money back.
As long as you pay income taxes in the State of Arizona, your donations to CPLC can be eligible for these credits. You do not need to itemize your tax return to qualify for these credits. Make sure to complete Form 301 and total the tax credits you will claim.
For questions about your taxes or eligibility for these credits, please contact your tax professional. More information can be found on the Arizona Department of Revenue website.