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December 2011
Dear Friends,
It is getting close to tax season and Kim & I are already starting to prepare for the 2011 tax season. It's not too late to contact our office for a tax planning appointment. You have just a few short weeks before December 31, 2011, to adjust your withholding, make contributions, or other tax preparations!
Arizona School Tax Credit
Clients are always asking me "What can I do to reduce my taxes?" One way is to donate to an Arizona school. It helps keep programs in schools and your tax dollars will be spent for education. You can benefit from the credit even if you get a refund because the Arizona School Tax Credit directly reduces your Arizona tax liability!
- Donate to any public school in Arizona
- $200 maximum credit for single or head of household
- $400 maximum credit for married filing joint
- Carry forward any unused portion of the donation to future years
How to tell if you would get a tax benefit from the credit:
On your 2010 Arizona taxes, take a look at your tax liability (line 30 of the 140.) If that number is more than $400 ($200 for single filers) and your tax situation is similar to last year you can donate the maximum credit amount.
If the number on line 30 is less than $400 ($200 for single filers) your maximum benefit would be equal to that amount. If your donation is greater than your 2011 tax liability, the credit will carry forward. If you're not sure if you would benefit from making the donation, just give us a call and we'll give you advice.
You can donate to any Arizona public school. Just remember the donation needs to be made before December 31, 2011!
Do you need an appointment?
Often times we can give you tax planning advice over the phone. But if your tax situation is complicated, you may always call the office for an appointment.
Looking forward to seeing you!
Bruce Eldredge
Enrolled Agent
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