NEWS AND INFORMATION

There are a number of tax credits available in Arizona for the 2024 tax year. Some have new increased contributions limits. Please review your specific situation to make sure you are eligible.  Payments you make for these credits are all to charities or schools and that allows you to take the AZ tax credit in lieu of paying AZ tax to the Dept of Revenue. 

Public/Charter School Credit:   

The credit contribution limit for the Public School Credit in 2024 is $200 Single, Head of Household and Married Filing Separate filers, and $400 for Married Filing Joint filers. The tax credit for contributions to public school credit is claimed by the individual taxpayer on Form 322.

Here is a link to a list of public schools: https://azdor.gov/sites/default/files/2023-03/PUBLICATION_ADESchoolListing.pdf

• You can choose your local public or charter school; credit can be utilized towards sports, art, music, books and equipment, meal programs, consumable health care supplies and playground equipment.
• If you do not have a preference you can use this link: https://www.wsd7.org/about-us/arizona-tax-credit This is for Wilson School District, a low-income school that can use the funds for needed activities. 

School Tuition Organization (STO): There are two credits available. The original one, called the Credit for Contributions to Private School Tuition Organizations, has contribution limits of $731 for Single, Unmarried Head of Household and Married Filing Separate filers, and $1,459 for Married Filing Joint filers. The tax credit for contributions to private school tuition organizations is claimed by the individual taxpayer on Form 323. 

The second one, called the Credit for Contributions to Certified School Tuition Organizations – Individual, is only available to individuals that first donated the maximum amount allowed (see above: $731 Single / $1,459 MFJ) for a credit under the original income tax credit (see prior paragraph). This second credit has a maximum contribution limit of $728 Single / $1,451 MFJ, and the STO must be on the state certified list. The tax credit for contributions to certified school tuition organizations-individuals is claimed by the individual taxpayer on Form 348. 

Here is a link to a list of school tuition organizations: https://azdor.gov/sites/default/files/2023-06/REPORTS_sto-i-list.pdf

Here is a link to an STO. If you need a recommendation, we can provide a school and student you can recommend.  https://arizonatuitionconnection.com/donate-2/ 

Here is additional information on the Public/Charter School and School Tuition Organization Credits: https://azdor.gov/sites/default/files/2023-03/PUBLICATION_707.pdf

Qualifying Charitable Organization (QCO) Credit (formerly Working Poor Credit): This credit is available for contributions to Qualifying Charitable Organizations that provide assistance to residents of Arizona who either receive Temporary Assistance of Needy Families (TANF) benefits, are low-income residents of Arizona, or are chronically ill or have physically disabled children. The contribution limit for the QCO Credit in 2024 is $470 for Single or Head of Household filers and $938 for Married Filing Joint filers. The tax credit for contribution to the QCO Credit is claimed by the individual taxpayer on Form 321. 

Check this link for eligible charities: https://azdor.gov/sites/default/files/2024-01/CREDITS_2024_qco.pdf

Qualifying Foster Care Charitable Organization: If you donate to a qualifying foster care charitable organization that meets the criteria for serving foster children, you can make a contribution up to the maximum credit of $587 for Single and $1,173 for Married Filing Joint filers. The tax credit for contribution to the Qualifying Foster Care Credit is claimed by the individual taxpayer on Form 352. Check this link for eligible charities: 

https://azdor.gov/sites/default/files/2024-01/CREDITS_2024_qfco.pdf 

To contribute to these credits we have partnered with Executive Council Charities. This link will help you contribute to both the QCO and Foster Care Credits.  https://www.ec70phx.com/charity-donation/say-campaign-for-jennifer-juhl-cpa-p-c/   (EC70 Referring Member please select Jennifer Juhl CPA from the dropdown list) 

Arizona Military Family Relief Fund: This credit helps families of deployed, injured or killed military personnel. ($200 Single / $400 MFJ). This credit caps at $1,000,000 annually, so that contribution should be made sooner in the calendar year than later. If your donation is not in the first $1mill annually, your donation will still be accepted as a donation but NOT a tax credit. There is an Estimate of Donations Received here so you can see if it is still available for a credit. Please be advised. 

Visit: https://dvspay.az.gov/content/mfrf-tax-credit

To summarize:

For a Married Filing Joint return, the Public School Credit max is $400, the Private Tuition Organization Credits would be $2,910, the Qualifying Charitable Organization Credit is $938, the Qualifying Foster Care Credit is $1,173, and the AZ Military Relief Fund is $400, for a total of $5,821 of available tax credits. 

For a Single filer, the Public School Credit max is $200, the Private Tuition Organization Credits would be $1,459, the Qualifying Charitable Organization Credit is $470, the Qualifying Foster Care Credit is $587, and the AZ Military Relief Fund is $200, for a total of $2,916 of available tax credits. 

 In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. 

Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury. 

FinCEN will permit Federal, State, local, and Tribal officials, as well as certain foreign officials who submit a request through a U.S. Federal government agency, to obtain beneficial ownership information for authorized activities related to national security, intelligence, and law enforcement. Financial institutions will also have access to beneficial ownership information in certain circumstances, with the consent of the reporting company. Those financial institutions’ regulators will also have access to beneficial ownership information when they supervise the financial institutions. 

FinCEN is developing the rules that will govern access to and handling of beneficial ownership information. Beneficial ownership information reported to FinCEN will be stored in a secure, non-public database using rigorous information security methods and controls typically used in the Federal government to protect non-classified yet sensitive information systems at the highest security level. FinCEN will work closely with those authorized to access beneficial ownership information to ensure that they understand their roles and responsibilities to ensure that the reported information is used only for authorized purposes and handled in a way that protects its security and confidentiality. 

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report. 

A reporting company created or registered on or after January 1, 2024, will have 30 days to file its initial beneficial ownership information report. This 30-day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier. 

What companies will be required to report beneficial ownership information to FinCEN? 

Companies required to report are called reporting companies. There are two types of reporting companies: 

• Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States. 
• Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office. 

There are 23 types of entities that are exempt from the reporting requirements (see Question C.2). Carefully review the qualifying criteria before concluding that your company is exempt. Here is an eligibility quiz provided by CT Corporation for reference*.

You can reference the information provided by FinCEN to review if your company may be required to report. Please keep in mind this is still a work-in-process as FinCEN defines some of the “how” of this process. 

 * Please note that this resource is offered as general guidance and is not intended to be a substitute for legal advice or consultation with an attorney 

Online Account is an online system from the IRS that allows you to securely access your individual account information. Using this system will allow you to get accurate information and will help prevent delays or issues with tax return processing. Steps to set up an account are below.
 

Using Online Account you can view: 

• The amount you owe, updated for the current calendar day
• Your balance details by year
• Your estimated tax payments
• Your payment history and any scheduled or pending payments
• Key information from your most recent tax return
• Payment plan details, if you have one
• Digital copies of select notices from the IRS
• Your address on file

You can also: 

• Make a payment online
• See payment plan options and request a plan via Online Payment Agreement
• Access your tax records via Get Transcript

To set up your Online Account use the link below and follow the updated instructions.

https://www.irs.gov/payments/your-online-account