It is Tax Time and You Can Make a Difference in a Child's Life and Here is How:

Here is how it works:

The Arizona State Tax Credit program allows you to make a donation to the McKenna Youth Foundation (Qualifying Charity Organization) as well as other categories of Arizona tax credits (Military, Foster, Public and Private Schools) and receive a dollar-for-dollar credit against Arizona state taxes owed.

Donating to the McKenna Youth Foundation will most likely leave you in a tax neutral situation, meaning you’ll pay about the same total amount whether you use the tax credits or just pay the tax; but, by donating you get a say in how the money is spent. You may contribute up to the amount of your expected Arizona tax liability to each tax credit category, for the McKenna Youth Foundation, you may contribute up to $400.000 for a single filer and $800.00 for a joint filing. If you contribute more than your total state tax amount, the credits can be carried forward five years. You must make your tax credit donations by April 15, 2019, for them to apply to the 2018 year. You can find additional information on the Arizona Dept of Revenue state tax credit page.

Example:

Assume you normally pay about $3,000 in total Arizona state taxes. This year you decide to contribute to organizations eligible for the tax credit.

Let’s assume you make four tax credits (the Arizona Military Relief Fund Credit for $400, the McKenna Youth Foundation for $800, the Public School Tax Credit for $400 and the Private School Credit for $1,092) for a total of $2,692.

You get a dollar-for-dollar credit against state taxes owed for $2,692. By donating to tax credit eligible organizations, now your total state tax liability equals $3,000 less the credit of $2,692, for $308 of remaining tax liability. Your total dollars paid remains $3,000 whether you use tax credits or not – it’s either $3,000 all paid to the state, or $2,692 paid to tax credit eligible organizations and $308 paid to the state. If you had already paid in the full $3,000 in state taxes during the year, you would get a refund for the $2,692.

Your tax professional can answer additional questions about tax credits and the forms you need to file with your tax return to get the credit.

Please make a Tax Credit Contribution to the McKenna Youth Foundation and MAKE A DIFFERENCE IN A CHILD'S LIFE!