Go Back  FlyerTalk Forums > Miles&Points > Credit, Debit and Prepaid Card Programs > Manufactured Spending
Reload this Page >

Income taxes with CC, no fee—Arizona Tuition Scholarship Tax Credit

Income taxes with CC, no fee—Arizona Tuition Scholarship Tax Credit

Old Aug 29, 18, 12:52 pm
  #1  
Original Poster
 
Join Date: Nov 2007
Location: Phoenix, AZ
Programs: WN A-List, Marriott Tit
Posts: 253
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.

Last edited by tcook052; Aug 31, 18 at 10:31 am Reason: FT Rules on charitable solicitations
boulderlaw is offline  
Old Aug 29, 18, 2:58 pm
  #2  
 
Join Date: Oct 2013
Posts: 1,291
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.
tuphat is offline  
Old Aug 29, 18, 3:19 pm
  #3  
Original Poster
 
Join Date: Nov 2007
Location: Phoenix, AZ
Programs: WN A-List, Marriott Tit
Posts: 253
Originally Posted by tuphat View Post
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.
Good point. To emphasize, this only applies on your federal return. The AZ benefits are still dollar-for-dollar, so the miles are free. Here is the proposed federal reg: https://www.irs.gov/newsroom/treasur...al-tax-credits
boulderlaw is offline  
Old Aug 30, 18, 3:58 pm
  #4  
 
Join Date: Jul 2009
Posts: 719
Milton Manley, dear Lord, please tell us he's the youngest and you have so many kids you ran out of reasonable names...
zceuxbhjutf is offline  
Old Aug 30, 18, 4:38 pm
  #5  
Original Poster
 
Join Date: Nov 2007
Location: Phoenix, AZ
Programs: WN A-List, Marriott Tit
Posts: 253
Originally Posted by zceuxbhjutf View Post
Milton Manley, dear Lord, please tell us he's the youngest and you have so many kids you ran out of reasonable names...
Our first choice was zceuxbhjutf, but it was taken.
boulderlaw is offline  
Old Aug 30, 18, 5:22 pm
  #6  
 
Join Date: Jul 2015
Programs: UA Plat
Posts: 149
Originally Posted by boulderlaw View Post
Our first choice was zceuxbhjutf, but it was taken.
Touché!
jcp3rd is offline  
Old Aug 31, 18, 10:34 am
  #7  
A FlyerTalk Posting Legend and Moderator: Air Canada Aeroplan, Canada & Manufactured Spending
 
Join Date: May 2002
Location: YEG
Posts: 53,207
Exclamation

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 is offline  

Thread Tools
Search this Thread
Search Engine: