Davis Tax Services, LLP

Tax planning, preparation & problem resolution

Friday, Dec 8, 2023

Give and get back

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. Under new federal rules, however, those donations generally no longer count as charitable contributions on your federal return.

Feeling generous? You can donate for more than one of the tax credits. In fact, you can give for all four tax credits, if your tax situation allows.

It's not often you can end up on the winning end of a tax law, and three of the credits allow donations up to Apr. 15. 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, visit our Arizona Tax Credits page, download this brochure or visit AzCredits.org or the Arizona Department of Revenue.

You may donate conveniently online to charitable organizations and for private schools at AzTaxCreditFunds.com. For just Tucson organizations, visit TucsonTaxCreditFunds.com



Highlights of tax law changes



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:

    Internal Revenue Service
    P.O. Box 802502
    Cincinnati, OH 45280-2502

Or, pay online at https://www.irs.gov/payments

Instructions and voucher forms are available from the IRS website.

Mail state estimated payments to:

    Arizona Department of Revenue
    PO Box 29085
    Phoenix, AZ 85038-9085

Or pay online at https://aztaxes.gov

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.

Year-end planning

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:

  1. Maximize your retirement contributions, whether to a 401(k), IRA or other "qualified plan."
  2. Pay ahead: paying now for spring semester tuition, spring property taxes, upcoming work-related expenses, charitable donations and other things can give you a tax deduction this year.
  3. Clear out your closets now to take charitable donations on this year's return
  4. Put in energy efficient improvements now to your home to qualify for tax breaks.
  5. If you have poorly performing investments that you want to dump, sell them now to take the losess this year.
  6. If there's income that you don't need to receive now and it can be put off, wait until after Jan. 1 so it will appear on your tax return in a year from now instead of in just a few months.

Need W-9's?

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.

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: