PHOENIX - The Federal tax deadline has been extended due to the ongoing pandemic, and on April 5, Arizona followed suit, matching the federal deadline of May 17.
The decision by Arizona state officials to extend the tax deadline could help make up for a loss of much-needed donations for local nonprofits. There is a charitable tax donation mechanism in Arizona, meaning if a taxpayer donates to qualified organizations, they basically get their money back. Now, with an extra month to make such donations, many nonprofits are hoping more people will donate.
"It's huge for us in our fundraising. It’s probably the main channel we use to raise money for the organizations that matter to myself and our company. It moves the needle," said Adam Bishop Climb Wealth Management.
Bishop says the state's decision will most definitely help local organizations that have seen had plummeting donations.
"It has to be an Arizona-based charity, and what I would tell folks is if there's an organization that you're passionate about or that you care about, and it's an Arizona organization, reach out to them. Ask them if they participate in the tax credit program. Chances are they do," said Bishop.
Under the Arizona Charitable Tax Credit, a single person can get up to $400 back, while a couple can get up to $800 back. Bishop says many of his clients don’t know about the credit, but once they do, they’re inclined to give back.
"Especially when they see how the money helps an organization that’s important to them -- that’s the main reason -- but how that money comes back to them. Whether it be reducing the amount of money they owe to the State of Arizona if they owe at the end of the year when they did their taxes, or enhancing their refund by the amount they gave subject to the rule of the credit," said Bishop.
Bishop says people who have already completed their taxes can still donate the $400 or $800, and they will be able to claim it on their 2021 tax return.
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