Guest Post: Tax Tips for Arizona Residents

Posted: March 4, 2016

APESF is excited to share our first guest post by “AZ Money Guy” Robert Hockensmith.

Robert is the President of Robert F. Hockensmith, CPA, PC, a certified public accounting and consulting firm that has operated in Phoenix since 1986. He prepares financial statements, offers payroll services, provides tax preparation for corporate, partnership and individual returns, aids in litigation support and gives financial advice to the public. He is also an Enrolled Agent who represents taxpayers in dealings with the Internal Revenue Service and the Arizona Department of Revenue. He presently teaches at the University of Phoenix in Arizona for both the graduate (MBA and Masters in Accountancy) and undergraduate accounting classes. Bob is also a Dave Ramsey Endorsed Local Provider (ELP) in Phoenix.

Tax Tips for Arizona Residents

Below are some tax tips that allow Arizona taxpayers who itemize deductions on their returns to get BOTH an Arizona Tax Credit AND a Federal Tax Deduction for the same Charitable Contributions. (If you take advantage of this, single taxpayers can actually make up to $600 more than they contribute as a cash refund, and married taxpayers can receive as much as $1200 more than they contribute.)

  • Contribute to the Arizona State private school system. You do not need to have kids to take advantage of this credit. You can even donate up to April 15th for the previous year on this one. (http://www.apesf.org/donate)
  • Donate to any Arizona public school ($200 for single, $400 for family). Charter schools are considered public schools. You do not need to have kids to take advantage of this credit. You can even donate as late as April 15th for the previous year on this one too.
  • Donate to the Arizona Foster Child Organization $400 if single, $800 for family contributions (https://www.azdor.gov/taxcredits/qualifyingcharitableorganizations.aspx )
  • Contribute to Arizona Department of Veteran Services ($200 for single, $400 for family). This charitable contribution requires you to complete a form, print it out, and mail in with the contribution being made. (http://dvs.az.gov/benefits/relief_fund.aspx)
  • Donate to organizations that help working poor ($200 for single, $400 for family). A suggested contribution that can be made for organizations that help the working poor would be food banks, locally or national. (http://www.thankyou4caring.org)
  • If your license plates are due, pay for them prior to year-end as they may be deductible on your tax return. Always pay the two-year license tag fee instead of the one-year, because you will receive a credit if you turn the car in or sell it, and you receive a discount making the two-year payment.
  • Don’t forget to pay any medical expenses so they may be taken as a tax deduction on the Arizona tax return at 100% (even if you do not get a federal deduction). Medical expenses paid with a credit card are tax deductible in the year charged, even though you may pay the credit card bill later.

Most of these contributions can all be made online. The contributions allow you to receive a federal tax deduction, a state tax credit, and you get the benefit of your air miles or points if you use a credit card to make the contributions.

Call today, don’t delay! See how this affects you. We can be reached at 602-264-9331.

Robert F. Hockensmith, CPA, PC
Certified Public Accountant/Enrolled Agent/Advisor
6232 N 7th Street, Suite 110
Phoenix, AZ 85014
P: (602) 264-9331 | F: (602) 279-1766
www.azmoneyguy.com
robert@azmoneyguy.com

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