Income taxes with CC, no fee—Arizona Tuition Scholarship Tax Credit
Aug 29, 2018, 12:52 pm
#1
Original Poster
Join Date: Nov 2007
Location: Phoenix, AZ
Programs: WN A-List, Marriott Tit
Posts: 257
Income taxes with CC, no fee—Arizona Tuition Scholarship Tax Credit
I just discovered how to pay Arizona income taxes with a credit card—with no fee. And, you can help send my mini-FTer to school at the same time. Here's how:
The Arizona Tuition Scholarship Tax Credit lets you to take a dollar-for-dollar tax credit for a donation to a tuition scholarship organization. You can also nominate a kid to receive your donation. (If you like this idea, I hope you'll nominate my kid—<redacted>. The beautiful part is that the tuition scholarship organizations don't charge a fee on credit card donations. So, if you owe $1,000 in Arizona income taxes (or had those taxes withheld throughout the year) you can donate $1,000 to a tuition scholarship organization with a credit card, bank the points/miles, and get a $1,000 credit (or refund) against your AZ taxes. The max for 2018 is $2,213 (filing married) or $1,107 (filing single).
Step-by-Step Directions
1. Determine your state tax liability by reviewing Line 48 on Arizona Form 140.
2. This is the amount you can contribute, up to $2,213 (filing married) or $1,107 (filing single) for 2018. Instead of writing a check to the state, you will charge that amount at the Arizona Private Education Scholarship Fund. If the taxes were deducted from your paycheck, you will get a refund after you file.
3. You should give online with a credit card. (Obviously.)
4. Please consider recommending <redacted> under the “Recommendations” section. Ninety percent or moreof the donation goes directly to tuition scholarships. One hundred percent of the points/miles go to you.
5. Tax forms to be complete when filing (301, 323, and possibly 348) can be found here or in TurboTax, et al. Need a tax preparer that can help? See APESF’s list.
This post is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
The Arizona Tuition Scholarship Tax Credit lets you to take a dollar-for-dollar tax credit for a donation to a tuition scholarship organization. You can also nominate a kid to receive your donation. (If you like this idea, I hope you'll nominate my kid—<redacted>. The beautiful part is that the tuition scholarship organizations don't charge a fee on credit card donations. So, if you owe $1,000 in Arizona income taxes (or had those taxes withheld throughout the year) you can donate $1,000 to a tuition scholarship organization with a credit card, bank the points/miles, and get a $1,000 credit (or refund) against your AZ taxes. The max for 2018 is $2,213 (filing married) or $1,107 (filing single).
Step-by-Step Directions
1. Determine your state tax liability by reviewing Line 48 on Arizona Form 140.
2. This is the amount you can contribute, up to $2,213 (filing married) or $1,107 (filing single) for 2018. Instead of writing a check to the state, you will charge that amount at the Arizona Private Education Scholarship Fund. If the taxes were deducted from your paycheck, you will get a refund after you file.
3. You should give online with a credit card. (Obviously.)
4. Please consider recommending <redacted> under the “Recommendations” section. Ninety percent or moreof the donation goes directly to tuition scholarships. One hundred percent of the points/miles go to you.
5. Tax forms to be complete when filing (301, 323, and possibly 348) can be found here or in TurboTax, et al. Need a tax preparer that can help? See APESF’s list.
This post is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Last edited by tcook052; Aug 31, 2018 at 10:31 am Reason: FT Rules on charitable solicitations
Aug 29, 2018, 2:58 pm
#2
Join Date: Oct 2013
Posts: 1,322
Be aware of the following --
In an effort to blunt legislative changes enacted by New York and various other states, which could have allowed taxpayers a workaround the federal $10k SALT limit enacted earlier this year, the IRS recently proposed regulations that generally haircut a federal charitable donation deduction for any state/local tax benefit derived from the contribution.
In the case of Arizona, where you get a dollar-for-dollar state income tax credit, you wouldn't be able to deduct any portion of the amount contributed, as you would have in previous years. Of course, if you don't itemize, you wouldn't care.
In an effort to blunt legislative changes enacted by New York and various other states, which could have allowed taxpayers a workaround the federal $10k SALT limit enacted earlier this year, the IRS recently proposed regulations that generally haircut a federal charitable donation deduction for any state/local tax benefit derived from the contribution.
In the case of Arizona, where you get a dollar-for-dollar state income tax credit, you wouldn't be able to deduct any portion of the amount contributed, as you would have in previous years. Of course, if you don't itemize, you wouldn't care.
Aug 29, 2018, 3:19 pm
#3
Original Poster
Join Date: Nov 2007
Location: Phoenix, AZ
Programs: WN A-List, Marriott Tit
Posts: 257
Be aware of the following --
In an effort to blunt legislative changes enacted by New York and various other states, which could have allowed taxpayers a workaround the federal $10k SALT limit enacted earlier this year, the IRS recently proposed regulations that generally haircut a federal charitable donation deduction for any state/local tax benefit derived from the contribution.
In the case of Arizona, where you get a dollar-for-dollar state income tax credit, you wouldn't be able to deduct any portion of the amount contributed, as you would have in previous years. Of course, if you don't itemize, you wouldn't care.
In an effort to blunt legislative changes enacted by New York and various other states, which could have allowed taxpayers a workaround the federal $10k SALT limit enacted earlier this year, the IRS recently proposed regulations that generally haircut a federal charitable donation deduction for any state/local tax benefit derived from the contribution.
In the case of Arizona, where you get a dollar-for-dollar state income tax credit, you wouldn't be able to deduct any portion of the amount contributed, as you would have in previous years. Of course, if you don't itemize, you wouldn't care.
Aug 30, 2018, 3:58 pm
#4
Join Date: Jul 2009
Posts: 721
Milton Manley, dear Lord, please tell us he's the youngest and you have so many kids you ran out of reasonable names...
Aug 30, 2018, 4:38 pm
#5
Original Poster
Join Date: Nov 2007
Location: Phoenix, AZ
Programs: WN A-List, Marriott Tit
Posts: 257
Aug 31, 2018, 10:34 am
#7
A FlyerTalk Posting Legend
Join Date: May 2002
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Posts: 56,449
This thread has been closed and links removed or edited as it fails to meet current FT Rules regarding charitable posts, namely that such posts need to be approved before they are posted only in one forum, the Flyertalk Cares forum, and that the post be for a registered charity.
tcook052
MS forum moderator
tcook052
MS forum moderator