Information on the Arizona Charitable Tax Credit:
Your gift to Make Way for Books may qualify for the Arizona Charitable Tax Credit! Individuals filing their taxes in Arizona may receive a credit of up to $400 and married couples may receive a credit up to $800 on their state taxes. Make sure your gift is postmarked by April 15, 2021 to receive the credit on your 2020 state tax return. To claim the tax credit donation for Make Way for Books, all donors must use the code 20166.
You can take the Charitable Tax Credit in addition to the School Tax Credit and other credits. And you do not have to file an itemized return to take advantage of this credit!
The CARES Act Increases Donation Tax Deductibility 2020
Two New Tax Benefits to Donors have been announced. Please see below for more information. Details and language taken from the Foundation Group and Alliance of Arizona Nonprofits.
Universal Deduction for Donations Up to $300
For those who no longer itemize their charitable giving, the CARES Act will allow these individual taxpayers to deduct donations to charity of up to $300 on their 2020 federal tax return, even though they take the standard deduction. Married-filing-jointly taxpayers will get an above-the-line deduction of up to $600.
Raising the Charitable Giving Deduction Cap
For those donors who are still able to itemize their deductions, and therefore directly write off gifts to charity, the current deduction cap is 60% of adjusted gross income*. Corporations are able to deduct charitable donations up to 10% of taxable income.
*The 60% of AGI limit is for giving to 501(c)(3) public charities. The deductibility of gifts to 501(c)(3) private foundations is capped at 30%, and was not included in this legislation.
The CARES Act lifts these caps to 100% for individuals and joint filers, while corporations will see their cap lifted to 25% for 2020.
Please note: Make Way for Books does not provide advice about the tax or other treatment of gifts. The above information is provided for informational purposes only and is not intended to provide tax, legal, or accounting advice. Please seek guidance from your professional advisor to learn more about how these deductions and credits may impact your personal finances.