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Category: Arizona

Arizona Credits

Certain credits will be automatically calculated and carried over from the Federal return to your Arizona return. Arizona does offer additional credits that may be applicable to your Arizona return such as:

 

Property Tax Credit - You may claim the property tax credit if you meet all of the following:

1. You were either 65 or older in 2016 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration.

Note: SSI Title 16 income is not the normal Social Security disability.

2. You were an Arizona resident for the full year in 2016.

3. You paid property tax on your Arizona home in 2016. You paid rent on taxable property for the entire year or you did a combination of both.


4. If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. Refer to Form 140PTC instructions to see what income is included in household income. Tax Tip: To claim a property tax credit, you must file your claim or extension request by end of tax season (Generally, this date will be April 15th of the current year). You cannot claim this credit on an amended return if you file the amended return after the due date of your return.

 

Credit for Solar Energy Devices - Arizona law provides a solar energy credit for an individual who installs a solar energy device in his or her residence located in Arizona.  The solar energy credit for buying and installing a solar energy device is 25% (.25) of the cost, including installation, or $1,000, whichever is less. If you install another device in a later year, the cumulative credit cannot exceed $1,000 for the same residence.

 

If the allowable tax credit is more than your tax liability or if you do not have tax liability, you may carry the unused credit forward for up to the next 5 consecutive years. To be eligible for this credit, you must be an Arizona resident who is not a dependent of another taxpayer. To determine what devices qualify for this credit, please refer to Arizona Form 310.

 

Note: A taxpayer may claim a credit of up to $1,000 for a second personal home. A taxpayer that claims a credit for both a primary and secondary home is limited to a maximum credit of $1,000 in the taxable year.

 

Credit for Contributions to Qualifying Charities - Arizona law provides a credit for cash contributions made to certain charities 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 children who have a chronic illness or physical disability.  For taxable years beginning from and after December 31, 2015, Arizona law provides a separate credit, on Arizona Form 352, for cash contributions made to qualifying foster care charitable organizations.  See Form 321 Instructions for assistance.

 

Credit for Contributions Made or Fees Paid to Public Schools - Arizona law provides a credit for cash contributions made and certain fees paid to public schools in Arizona. “Public School” means a school that is part of a school district, a joint technical education district, or a charter school. This credit is available only to individuals. Corporations may not claim this credit. A partnership may not pass the credit through to its partners. An S corporation may not pass the credit through to its shareholders. See Form 322 Instructions for assistance.

 

Credit for Contributions to Private School Tuition Organizations -Arizona law provides a credit for contributions made to a private school tuition organization that provides scholarships or grants to qualified schools. This credit is available only to individuals. Corporations may not claim this credit. A partnership may not pass the credit through to its partners. An S corporation may not pass the credit through to its shareholders. See Form 323 Instructions for assistance.

 

Credit for Taxes Paid to Another State - You may qualify for this credit if you paid tax to Arizona and another state or country on the same income. If you have a Resident and a Nonresident state return, TaxSlayer will automatically calculate this credit within the return. If you have a Part-Year state return, the credit for taxes paid to another state will have to be manually calculated. See Form 309 Instructions for assistance.