The landscape for children in foster care in Arizona changed when the state legislature created the Foster Care Qualifying Tax Credit, which allows donors to re-direct their tax dollars to improve the lives of children in foster care. By donating to the Arizona Friends of Foster Children Foundation by April 15, 2017, your donation will reduce, dollar for dollar, the amount of state taxes you owe in 2017. A single taxpayer can donate up to $500 and married couples may give up to $1,000, and receive the tax credit.
What It Means for AFFCF
For the Arizona Friends of Foster Children Foundation, tax credit donations have meant that we have been able to say ‘yes’ to every child and family who reaches out to us with a request for ‘childhood activities’ that falls with our guidelines. For AFFCF, that means more athletic registration and equipment, music lessons, gymnastics, swim lessons, prom dresses, school field trips, summer camp and more than ever before. In 2016 we provided a record 5,207 awards to children in foster care, a 39% increase over 2015.
Choose Where Your Tax Dollars Go
Mostly what we hear about tax credits is, “it seems too good to be true!” The good news is, tax credits are an easy way for YOU to direct YOUR TAX DOLLARS to organizations that YOU choose. There are tax credits for Foster Care Qualifying Organizations, Charitable Organizations, Public Schools and Private Schools. YOU can spend your Arizona tax dollars to have create a brighter future for all of Arizona’s children by making a charitable contribution to each eligible tax credit group. Below is the maximum you can contribute for each tax credit category. They are stackable so you can contribute to more than one or all of them as long as you have enough tax liability:
- The maximum TAX CREDIT for FOSTER CARE QUALIFYING ORGANIZATIONS is $500 for single filers and $1,000 for married.
- The maximum TAX CREDIT for QUALIFYING CHARITABLE ORGANIZATIONS is $400 for single filers and $800 for couples.
- The maximum PUBLIC SCHOOL TAX CREDIT is $200 for individuals and $400 for couples.
- The maximum credit that may be taken for a donation to a SCHOOL TUITION ORGANIZATION is $1,087 for individuals and $2,173
for couples.
Lin LeClair, EA is a tax preparer and the owner of First Choice Tax Services in Tucson, Arizona. She is also a member of AFFCF’s Board of Directors. Questions? Call Lin LeClair at 520-320-1041.