With the end of the year approaching, it is the ideal time to donate to your church, school or charity. Setting up a visit with your CPA can ensure you are maximizing all deductions.
Jeremy Mueller of State Farm in Scottsdale offers ideas on "feel-good" deductions.
"There are many charities that qualify for this deduction. Most Arizona charities who provide for low-income families qualify," he says.
1. Qualifying Charitable Organization AZDOR.gov/sites ($800 married, $400 single). These charities specialize in foster care and outreach for Arizona’s youth.
2. Qualifying Foster Charitable Organization ($1,000 married, $500 single).
3. Credit for private school tuition organizations (two separate deductions) – Have a neighbor who goes to a private school nearby? This is a great way to put your tax dollars to work and to make a friend for life. Talk to the specific school on how you can help, but you may be eligible for between a $1,107 and $2,213 tax credit depending on how you file.
4. Public schools also need donations! Utilize the credit of 200 (single) or 400 (married) to help our nearby schools.
5. Donating to an organization that you care about can leave a lasting legacy. If it excites you, whether you get a tax credit or not, giving is just as valuable to the giver as the receiver. Give to your church or favorite charity. Please remember to speak with your CPA to abide by any gift tax rules if donating to any family members.
Disclaimer: Please reach out to your tax adviser. Under no circumstance am I tax professional. I have the pleasure of working with some of North Scottsdale’s families, and these are some tips quite a few families utilize for charitable giving and donations.