10 FRONTDOORS MEDIA | TAX CREDIT GIVING GUIDE Photos courtesy of Arizona Cancer Foundation for Children (left) and Youth On Their Own (right) 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 $421 for individuals and $841 for married couples for tax year 2023 and $470 for individuals and $938 for married couples for the 2024 tax year. QUALIFYING FOSTER CARE ORGANIZATIONS , with limits of $526 for individuals and $1,051 for married couples for tax year 2023 and $587 for individuals and $1,173 for married couples for the 2024 tax year. PUBLIC SCHOOL TAX CREDIT ORGANIZATIONS , with limits of $200 and $400. PRIVATE SCHOOL TUITION ORGANIZATIONS FOR INDIVIDUALS , with limits of $655 for individuals and $1,308 for married couples for the 2023 tax year and $731 for individuals and $1,459 for married couples for the 2024 tax year. CERTIFIED SCHOOL TUITION ORGANIZATIONS: These organizations may only receive your contribution if you’ve already maxed out the Private School Tuition Organization credit first. Limits increased to $652 for individuals and $1,301 for married couples for 2023 and $728 for individuals and $1,451 for married couples for 2024. PRIVATE SCHOOL TUITION ORGANIZATIONS FOR CORPORATIONS: C-Corporations, S-Corporations, LLCs and insurance companies can qualify for two types of credit. The first is the Corporate Contributions to School Tuition Organizations, which supports low-income students in private schools. The full name of the second credit is Corporate Contributions to School Tuition Organizations for Displaced Students or Students with Disabilities. Arizona law allows contributions to be counted for the 2023 tax year all the way up to April 15, 2024.

TAX CREDIT GIVING GUIDE | FRONTDOORS MEDIA 11 “Any qualifying contribution that can’t be used as a credit this year can be carried over to the next five years or taken as a current year tax deduction instead.” Photo courtesy of Pawsitive Friendships Photo courtesy of Aid To Adoption of Special Kids (AASK) Brenda Blunt, a partner with Eide Bailly LLP, said that state income tax rates are actually lower this year, but there are ways to maximize contributions for this year and next. “For 2023, the Arizona Legislature changed the tax rate on individuals from the two-tier rates of 2.55 percent and 2.98 percent in 2022 to a flat rate for everyone of 2.5 percent,” she said. “In addition, the Legislature now allows partnerships and S-corporations doing business in Arizona to elect to pay tax at the entity level rather than at the owners’ level. Both of these developments will result in some individuals paying less tax on the same amount of money in 2023 than they did in 2022, so those taxpayers will have less ability to absorb a charitable tax credit than they have in the past.” Blunt continued, “Any qualifying contribution that can’t be used as a credit this year can be carried over to the next five years or taken as a current year tax deduction instead. While deductions aren’t as great as credits, there is a valuable tax benefit for making a difference for the good of both current and future Arizona.” Tony Penn, president & CEO of United Way of Tucson and Southern Arizona, said the organization is proud to be a qualifying umbrella organization for the Arizona tax credit. This gives many individuals the opportunity to invest in their community and be a part of building a sustainable future in our region. “United Way of Tucson is one of many great organizations that qualifies for the Arizona charitable tax credit,” Penn said. “Donations to United Way’s Helping the Working Poor Fund supports hardworking families in our community that need a hand up — rather than a handout.” “This is a unique opportunity to direct your tax dollars to causes and organizations that matter to you,” Penn said. “When you give, you empower our community’s growth and well-being — and in many cases, you’re receiving a dollar-for-dollar refund for your contribution.” For a complete list of qualifying charitable organizations and qualifying foster care organizations, visit azdor.gov/tax-credits/contributions-qcos-and- qfcos . Organizations are added on an ongoing basis, so it may be worth your time to check back before year-end and again before April 15, 2024 — the last day 2023 tax credit contributions can be made.