Arizona taxpayers can reduce their tax liability by making a tax credit donation to qualifying charitable organizations that provide help to the working poor.
As with school tax credit donations, the maximum credit for contributions to charitable organizations is $400 for married taxpayers and $200 for single taxpayers.
To qualify for this tax credit, a charity must spend at least 50 percent of its budget on services to Arizona residents who are considered working poor. Services are defined as cash assistance, medical care, childcare, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in Arizona.
According to the Arizona Department of Revenue website, qualifying charitable tax credit organizations in Prescott, Prescott Valley, Chino Valley and Mayer include the Boys & Girls Club of Central Arizona; Chino Valley Food Bank; Coalition for Compassion and Justice; Feed the Hungry of Prescott Inc.; Four County Conference on Developmental Disabilities; Hannah's Home; L.I.F.E. Ministries dba Community Pregnancy Center of Prescott; Mayer Area Meals on Wheels; Nazcare; Neighbor to Neighbor; Northland Cares; People Who Care; Prescott Area Habitat for Humanity; Prescott Area Women's Shelter; Prescott Community Cupboard Food Bank, Inc.; Prescott Evening Lions Foundation; Prescott Meals on Wheels; Prescott Sunrise Lions Club Foundation Inc.; Prescott Valley Library Adult Literacy; Project Aware Inc.; The Salvation Army Prescott Corps; Stepping Stones Agencies; West Yavapai Guidance Clinic Inc.; Yavapai Big Brothers Big Sisters; Yavapai CASA for Kids; Yavapai Exceptional Industries; and Yavapai Food Bank.
More information about tax credits is available on the Department of Revenue website at www.azdor.gov/TaxCredits/ChariableTaxCredits.aspx.