New Arizona tax reforms could lead to greater benefits for charities and school organizations, according to the Phoenix accounting firm BeachFleischman.
Under the new reforms, which have been expanded for tax year 2019, certain donations will reduce the amount of state taxes that must be paid, BeachFleischman said. For example, paying fees to a public or charter school for extracurricular activities can now be claimed for a tax credit of up to $200, or $400 for joint filers. That includes events like field trips, club fees and sports fees.
In addition there are credits of up to $400 to $800 for joint filers – for donations made to any qualifying charity. This includes charities that help families with ill or disabled children. Finally, there are new tax credits for making donations to foster care organizations.
Each of these charities and organizations have a new five-digit code that will allow the state to track credits and donations when it comes time to file taxes. These tax credits will reduce the overall tax bill for those that claim them.
