State of Arizona Contribution Changes
Section 529, College Savings Plans
Beginning 2013, the State of Arizona has increased the income tax deduction amount available for contributions to any state’s 529 College Savings Plan. Married couples may deduct $4,000 when filing jointly and Single/Head of Household may deduct $2,000. This is an increase from $1,500/$750, respectively.
Private School Tuition Organizations
Beginning 2013, the State of Arizona has increased the tax credit maximums for the Private School Tuition Credit. The Original Individual Tax Credit (Form 323) has increased to $1,034 (Married Filing Joint-MFJ) and $517 (Single). If this Original Individual Tax Credit is maximized, it allows the taxpayer to contribute to the Overflow/Plus Tax Credit (Form 348). This credit has increased to $1,028 (MFJ) and $514 (Single). Therefore, the total maximums between the two credits are $2,062 (MFJ) and $1,031 (Single).
The State of Arizona has kept the Public School ($400 MFJ/$200 Single), Working Poor ($400 MFJ/$200 Single) and Arizona Military Family Relief Fund ($400 MFJ/$200 Single) credits in effect for 2013 with no changes in the maximum credit amounts.
Please remember, for these credits to count towards your 2013 State of Arizona taxes plus be a Federal Charitable Contribution Itemized Deduction, they must be completed on or before December 31, 2013. The Private School Tuition Credit can be completed before April 15, 2014 to count towards 2013 State of Arizona taxes, but will not count towards your 2013 Federal Charitable Contribution Itemized Deduction until the year in which the contribution was paid.
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