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Tax credit program helps organizations serving our communities
Written by Trista Steers MacVittie   
Thursday, 30 September 2010 13:21

Keeping local resources circulating within our own community seems easy enough.

Giving to organizations that serve the Verde Valley isn’t a novel idea.

However, many area residents aren’t taking advantage of a little gift the state of Arizona has given service organizations.

Arizona’s tax credit program allows state taxpayers to decide where their state income tax dollars are spent.

Paying taxes can seem like shoveling money into a black hole without a clear picture of what the dollars pay for or where each individual makes a difference. Arizona’s program allows its residents to account for the income tax dollars they pay.

Tax credits are broken into three categories and an individual or couple can contribute in each of the three areas for up to a specified amount. The taxpayers write a check to the organizations of their choice and then are reimbursed by the state come tax time.

An added bonus is the opportunity to then write off the contribution as a charitable donation on taxpayers’ federal income taxes.

The taxpayer gets to decide where his or her state income tax dollars are spent and receives a federal charitable write-off while a local organization can count on a little more money to fund its service — a win-win for the entire community.

Not all organizations or groups qualify for tax credit donations. The state selects organizations who meet specific criteria and qualify for the program.

In the wake of Arizona’s financial crisis the tax credit program has somehow survived. However, immunity has not be granted to any state tax-funded program and how long tax credit donations will be possible is uncertain.

Figure out which organizations you’d like to contribute to by December and give them a hand while helping yourself next April.

 

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