Arizona taxpayers may receive state tax credit for donations to Sold No More — a qualifying organization for the Arizona Charitable Tax Credit.
Did you know you can redirect a portion of your state tax dollars to Sold No More at NO additional cost? This reduces dollar for dollar what you pay in state income tax – a deduction for a donation you get back as lower taxes or as a refund WHILE supporting the work to end sex trafficking!
Couples filing jointly may reduce state taxes by up to $800 and individuals up to $400.
You can receive this tax credit in addition to the school tax credits. It is available to anyone who had a tax liability (i.e. is paying AZ state taxes). You do not have to itemize deductions on your state tax return in order to take advantage of this opportunity.
Recent changes in the IRS tax codes disallows federal tax deductions on charitable contributions for which donors also receive a state tax credit. However, with the federal standard deduction almost doubling, far fewer taxpayers will itemize their deductions. In addition, any donations made by August 27, 2018 still qualify for both the federal deduction and state tax credit.
Please note: Sold No More should be listed as 4Freedom Inc/Sold No More (DBA) on tax returns and when searching for eligible organizations. Sold No More is a 501(c)(3) nonprofit corporation, tax ID: 46-1109838. QCO Code 20135.
Q. What is the Arizona tax credit for charitable organizations?
A. You may claim a tax credit for donations to a qualifying charitable organization like Sold No More. You can reduce what you owe in state taxes by up to $800 (filed jointly) or $400 (single filers) – at no additional cost.
Q. What is the difference between a tax credit and a tax deduction?
A. A tax deduction may reduce your tax bill by a percentage of what you donated, depending upon your tax bracket and amount of deductions. A tax credit comes off the top of your state tax bill, lowering the amount of money that you must pay – dollar for dollar.
Q. Is this the same as the School Tax Credit?
A. This is a similar credit, but taxpayers are able to take advantage of both opportunities.
Q. Do I qualify?
A. You simply must file an Arizona tax return and have a tax liability.
Q. What happens if I don’t owe taxes at the end of the year?
A. This tax credit reduces your state tax liability and is not impacted by your tax withholdings during the year. If you withheld more than what you owed, the credit will increase your state tax refund. If you have no Arizona tax liability for the current year, you may carry the tax credit forward for up to five (5) years.
Q. How do I file for the credit?
A. There are two simple forms (AZ Form 301 & 321) that are included with materials provided to all state tax filers. Sold No More should be identified as “4Freedom Inc/Sold No More (DBA).”
For more information on the Arizona Charitable Tax Credit, consult your tax adviser or the AZ Department of Revenue at (602) 225-3381 or online at http://www.azdor.gov/TaxCredits.aspx
Sold No More is not a tax adviser — consult with your tax adviser for expert advice.