Tax Benefits
ARIZONA
Sow into us and reap a tax harvest!
NEW! Arizonians can now donate up to $841 ($421 single) to a Qualifying Charitable Organization (that’s us!), and receive a dollar-for-dollar credit. You can even make your donation up until tax filing day but still take the credit for the previous year! If you have a state tax liability, you can donate up to $841 for married filing jointly, or $421 for a single filer, and the state will credit your state tax liability dollar for dollar.
This individual income tax credit is available for contributions to Qualifying Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability. The tax credit is claimed on Form 321. The maximum credit allowed is $800 for married filing joint filers and $421 for single, heads of household, and married filing separate filers.
NEW! FEDERAL Tax Benefits:
Charitable Gift Annuity Announcements
The SECURE 2.0 Act of 2022, which was included in the $1.7 trillion spending bill signed by President Biden on December 29, has a small gift for charities and individuals over the age 70 1/2 who are willing to transfer up to $50,000 to a charitable remainder trust or into a charitable annuity arrangement.
SECURE 2.0 permits a taxpayer to make a one-time $50,000 distribution directly from an IRA or IRAs to a charitable remainder trust or a charitable annuity and make a one-time election to treat the contributions as if they were qualified charitable distributions made directly to a charitable entity.
As a bonus, the American Council on Gift Annuities just announced their rates are increasing. On November 21, 2022, the American Council on Gift Annuities Board of Directors approved an increase in the suggested maximum payout rate schedules for charitable gift annuities.
In general, the suggested maximum payout rates increased by approximately 0.4 to 0.6 percentage points, based on the annuitant’s age. The annual fixed payment has increased by $80 to $120 on a $20,000 gift annuity. The new ACGA suggested maximum charitable gift annuity rates became effective on January 1, 2023.
United Way of Tucson and Southern Arizona has staff who can help you with your IRA rollover to a charitable remainder trust or a charitable annuity. Please contact our Chief Development Officer, Jeff Petrovic, at jpetrovic@unitedwaytucson.org for more information.