1. “I get a refund from the state of AZ every year–so I can’t make a tax credit donation.”
FALSE! Just because you receive a refund from AZ does not mean you cannot donate to this program. You must find out what you actually owed to the state of AZ at the end of the year, regardless of what you have already paid in. This is your state income tax liability. For example–If you originally owed $750 and paid in $850 through your withholdings or tax payments, your refund would be $100. If you make a contribution to APESF for your full liability of $750, your refund will increase to $850. You will get back all of what you originally paid in. Sending money to APESF is just like sending tax payments to the state of AZ.
2. “I can’t afford to make a donation of $500 or $1000. I guess I can’t donate this year.”
FALSE! You can make a tax credit contribution of ANY amount, up to the maximum $500 for single individuals or $1000 for married couples. If you can only afford to contribute $200, then take the credit for $200! Every dollar helps!
3. “I have to wait until the end of the year to donate.”
FALSE! If the child you would like to support needs help now, you may contribute at any time during the year and it will be paid out during our next distribution cycle. We have 4 cycles per year—February, May, August and November with the deadlines being the last day of the previous month. Keep in mind—the family must also have a completed application on file with APESF for the funds to be paid.
4. “Making this donation is just like making a donation to any other charitable organization.”
FALSE! This donation qualifies for a dollar-for-dollar tax CREDIT against your AZ state income taxes. Making a donation to APESF is just like making a tax payment to AZ. It will directly reduce the amount of state income tax you owe. In addition, your donation may also qualify for a federal tax deduction but you should consult your tax advisor for more information regarding federal tax treatment.
5. “I’m not going to owe state taxes for this year–so I can’t make a donation.”
This is not always the case. If you don’t owe state taxes this year but believe you will in future years, you can make a contribution this year so the child receives the benefit, and then roll the credit over to offset your tax liability for up to 5 years. You can make a donation this year and wait to take the credit until a later date.