Are You Taking All the Tax Credits Available to You?

Dec 08, 2014 By Evan Nielsen In Taxation No Comment Tags : ,

Tax credits offer a dollar-to-dollar reduction in the amount of taxes you may owe, or increase the amount of refund you may receive. This makes them much more popular than a tax deduction, which only reduces the amount of your taxable income. The state of Arizona offers a variety of tax credits to businesses as well as individual taxpayers.

 

Unfortunately, most individuals aren’t aware of all the tax credits available to them. Arizona does not require you to itemize on your state tax return to claim state credits (though, if you are also taking the credit on your federal return, you will need to itemize for the IRS). Also, you can claim more than one tax credit at a time.

 

The following is a list of common Arizona tax credits that you may be overlooking:

 

  • Property tax credit for low-income seniors – credit available in the amount of $56-$502

 

  • Family tax credit for low-income families – credit available in the amount of $40-$240

 

  • Solar-energy device credit for homeowners who have installed solar-energy devises in their homes – credit available in the amount of either $1000 or 25 percent of the cost to purchase and install, whichever is lower

 

  • Military Family Relief Fund credit available to those who have made donations to a state fund that assists military families – credit available in the amount of $200-$400

 

  • Charitable Donation credit available to those who have made a donation to a qualifying Arizona nonprofit organization – credit available in the amount of $200-$800

 

  • Private school tuition credit available to those who have made a donation for private-school scholarships – credit available in the amount of $528-$1056

 

  • Public school extracurricular fee credit available to those who have made donations to support extracurricular activities at Arizona public schools – credit available in the amount of $200-$400

 

  • Solar water-heater plumbing credit– available in the amount of up to $75 for each “stub out” installation

 

  • Solar electric vehicle credit – available in the amount of up to $75 for each electric-vehicle recharging outlet installed

 

Eligibility for credits can be complex, and the total amount of credit you may be entitled to may be complicated to calculate. Before you prepare your 2014 tax return, contact Nielsen Law Group and schedule a consultation with a legal professional today. Call (480) 888-7111 or submit a web request here.