Donor Help Center
Understanding a Credit
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Many taxpayers do not know the difference between a Credit and a Deduction. Here are some helpful points.
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A Credit reduces taxes owed dollar-for-dollar while a deduction reduces taxable income.
Taxable income is used to determine the taxes owed. In effect, the benefit of a deduction
depends on the tax bracket of the donor. The benefit of a Deduction ranges from 0% to 5%
of the donation. The benefit of a Credit is 100%.
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How do I know if I am paying Arizona Taxes?
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Look at Line 40 of Arizona Tax Form 140. If that number is greater than 0, you pay
Arizona Income Tax.
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What does Arizona Tax Liablility mean?
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Simply put, if you pay income taxes to Arizona, you have an Arizona Tax Liability.
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Download the full brochure.
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