Arizona Tax Relief – How to Maximize the Benefits
The Arizona Department of Revenue has announced tax relief for Arizona taxpayers effective April 1, 2020. In addition, the IRS has also issued additional tax relief, but the state has yet to make corresponding changes. Nevertheless, taxpayers should know how to maximize the benefits of these tax breaks. There are a few things they should know before filing their tax returns.
One way to save money is by getting an EITC. This tax break helps taxpayers reduce their total tax burden by up to 50%. This tax cut is particularly useful for people who are struggling to pay high gas prices. It is a very effective way to help Arizona families. With gas prices over $5 a gallon, and grocery prices rising quickly, the EITC can be a great help for many households.
Another way to reduce Arizona tax liabilities is to donate to nonprofits. Arizona taxpayers can get a tax credit for donations to charitable organizations, foster care organizations, schools, and military families. These tax credits can be carried forward to five years. You don’t even need to itemize or document your state taxes to get a tax credit.