Tax Credit FAQs

FAQ’S about the Charitable Tax Credit For The Working Poor.

Q. What is the difference between a tax credit and a tax deduction?

A. A tax credit is applied as a reduction to your tax bill. In this case, the credit comes off the top of your state tax bill, lowering the amount of money that your must pay.

Q. Is this the same as the school tax credit?

A. This is a similar credit as the School Tax Credit. Taxpayers are able to take advantage of both opportunities.

Q. Do I qualify for the credit if my employer withheld taxes during the year?

A. The credit reduces your Arizona tax liability even if your employer withheld during the year. You would receive a refund equal to what your employer withheld less your tax liability after it is reduced by the allowable credit, i.e. your refund could be up to $800.00 for couples and $400.00 for singles/head of household.

Q. Was there an increase in this amount? 

A. Yes, for those organizations who meet the requirements the amount has doubled! Our partnering organization has been approved. Therefore we fall under the fulfilled requirements.

Q Do I qualify for the credit if I do not owe taxes at year end?

A. The credit reduces your state tax liability independently from any tax that you may have withheld during the year. If you withheld an amount equal to or greater than your tax liability, the credit will increase your state tax refund.

Q. Do I qualify?

A.  You must itemize charitable contributions on your state tax return.

Q. What happens if I don’t owe taxes at the end of the year?

A. The working poor tax credit reduces your overall state tax liability and is not impacted by your tax withholding during the course of the year. If you withheld more than what you owed, the credit will result in an increase in your state tax refund. If you have no Arizona tax liability for the current year, your may carry the tax credit forward for up to five (5) years.

Q. How do I file for the credit?

A. There are two simple forms. There are (AZ form 301 & 321) that is included in your state tax filing that you or your accountant will complete. The forms are included with materials provided by the State of Arizona to all state tax filers.

FAQ’s about other ways to donate.

Q. What if I am from another state and would like to make a donation?

A. The best way to make a donation is by writing a check payable to Crossroads Nazarene Church and write. T.R.A.C. donation in the memo. Send check to Crossroads Nazarene Church 2950 W. Ray Rd. Chandler Az. 85224

You will receive a statement from Crossroads at year end for your tax records to receive a tax deduction.

Q. What if I want to give more than the Tax Credit amount?

A. By all means please do!!! The best way is to make the Tax Credit donation in it’s full amount by clicking on www.CrossroadsTRAC.com  then write a check for the remaining balance you would like to donate to crossroads Nazarene Church and send to Crossroads Nazarene Church 2950 W. Ray Rd. Chandler Az. 85224 Please write T.R.A.C. in the memo and request the director be notified of the donation so we can properly thank you! You will receive a statement from Crossroads at year end for your tax records to receive a tax deduction.

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