Helping the Working Poor Tax Credit

UMOM New Day Centers qualifies as a Helping the Working Poor agency. In 2009, your donation may qualify for a $200 Arizona Tax Credit ($400 if married filing jointly).

The Helping the Working Poor Fund was established in Arizona to provide services for employed families struggling to make ends meet. To encourage charitable contributions specifically for this purpose, Legislature allows most donors to take a credit against their Arizona Income Tax.

Frequently Asked Questions about Helping the Working Poor

Note : UMOM New Day Centers, Inc. is not a tax advisor. As with any financial recommendations, contact a qualified tax advisor for expert advice on your specific tax situation.

What's the difference between a tax credit and a tax deduction?  A tax credit is applied as a reduction to your final tax bill. In this case, the tax credit comes right off the top of your state tax bill, lowering the amount of money that you must pay. For example, if you qualify and give $200 to Helping the Working Poor, you will pay $200 less in state taxes. A tax deduction, on the other hand, is an item that helps calculate what your final tax bill will be. In addition to the state tax credit, your gift to Helping the Working Poor can be taken as a deduction on your federal taxes.

How do I qualify? You must itemize charitable contributions on your tax return.  PLEASE NOTE: contrary to past years, the credit no longer requires a baseline year.

Do I qualify for the credit if I do not owe any taxes at year end?  Assuming you have a state tax liability, the credit reduces it independently from any tax that you may have withheld during the the year. If you withheld an amount equal to or greater than your tax liability, the credit will increase your state tax refund accordingly.

How do I file for the credit? You or your accountant complete a simple form, which is included with materials provided by the State of Arizona to all state tax filers, and send it along with your state tax return.

To learn more, you can view the description and instructions provided by the State of Arizona, with just a click of your mouse ...  GO TO STATE INFORMATION.  For more information on this credit, contact your tax advisor or call us at 602-889-0676 and we will send information to you.  Click Here to open and print the most recent tax forms from the Arizona Department of Revenue.

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