Davis Tax Services, LLP
Tax Planning & Preparation
Home page Services Appointments Profile Downloads Tax update Contact us
Davis Tax Services, LLP
4402 E. Brott St.
Tucson, AZ 85712
[ Map ]
Tax Tips & Topics
Sunday, Dec 21, 2014
Give and get back more
Arizona offers four kinds of "dollar-for-dollar" charitable donation credits, so here's a great way to do some good for the community and for yourself at the same time.
You get a dollar off your state tax for each dollar you donate, up to the program limit. But it's more than that, because those donations also count as charitable contributions on your federal return as well. So if you are in a 25% federal tax bracket, you get back $1.25 for each dollar you give.
It's not often you can end up on the winning end of a tax law, but most of the credits require donations be received by Dec. 31. Do yourself a favor and tell the state legislature how to spend some of its budget by checking out these Arizona tax credits:
For more information on all four credits, download this brochure.
How much can I deduct?
Many charities provide donation receipts without giving a value. If you need to determine how much to claim for your donations, check these sites:
Reminder: Quarterly estimated taxes due 1/15
If you make quarterly estimated tax payments, remember that the 4th quarter payment is due Jan. 15. For federal, mail to:
P.O. Box 51000
San Francisco, CA 94151-5100
Tax tip: If you are going to make a state quarterly estimated payment, pay it by Dec. 31 so it counts as an itemized deduction on this year's return.
If you have a business and paid anybody who wasn't an employee more than $600 througout the year, you'll probably need to give them a 1099-MISC form in January. To make sure you have the information you need to file the 1099, have them fill out a W-9 Request for Taxpayer Identification form.
Ideally, you would have gotten a W-9 from them before paying them. But, if you didn't (or they changed information, such as a new address), this is your time to make good.
You can download they W-9 form from the IRS website. Tip: fill out one for your business so you have it ready when customers ask you for one.
Now's the time to start thinking about how to minimize your tax liability for this year. If you'd like to discuss your tax situation, please contact me for an appointment.
Here are a few "top of the list" tips: