10 FRONTDOORS MEDIA | TAX CREDIT GIVING GUIDE Photo courtesy of St. Vincent de Paul

TAX CREDIT GIVING GUIDE | FRONTDOORS MEDIA 11 Tax Credit Contributions CONTINUE TO IMPACT ARIZONA NONPROFITS, RESIDENTS By Tom Evans T ax credit contributions continue to be the fuel that powers many Arizona nonprofits — donations that provide revenue to nonprofits while giving donors a break on state income taxes. The State of Arizona allows taxpayers to receive a dollar-for-dollar credit on their state income taxes when they donate to qualified organizations in these categories: ARIZONA QUALIFYING CHARITABLE ORGANIZATIONS, which provide basic needs to qualifying low-income families and individuals, the chronically ill and disabled. Limits are $400 for individuals and $800 for married couples. QUALIFYING FOSTER CARE ORGANIZATIONS, with limits of $500 for individuals and $1,000 for married couples. PUBLIC SCHOOL TAX CREDIT ORGANIZATIONS, with limits of $200 and $400. PRIVATE SCHOOL TUITION ORGANIZATIONS FOR INDIVIDUALS, with limits of $623 for individuals and $1,245 for married couples. These limits have been increased for 2022 and can be combined with the “Switcher” tax credit if maxed. CERTIFIED SCHOOL TUITION ORGANIZATIONS (also known as the “Switcher” Individual Tax Credit): These organizations may receive your contribution if you’ve already maxed out the Private School Tuition Organization credit first — for which limits increased to $620 individually and $1,238 for married couples. Contributions can be made directly or by the shareholder when paid by an S-Corporation. SCHOOL TUITION ORGANIZATIONS FOR CORPORATIONS: C-Corporations, S-Corporations, LLCs and insurance companies can qualify for two types of credits. The Low-Income Tax Credit supports low-income students in private schools, and the Disabled/Displaced Tax Credit supports disabled students and students in (or who have been in) foster care. Because there are statewide caps for both credits ($142 million and $6 million, respectively), applications for approval are made by the Private School Tuition Organization to the Arizona Department of Revenue on behalf of the donor. The corporate tax credits can be beneficial for many people who own their own companies. Photo courtesy of Habitat for Humanity