Thanks to all who attended on Saturday. If you were caught up in the traffic from the other event on campus, we apologize. We were not aware of the other event. Mary will check the calendar for our next Open House on March 13.
We will be starting our sew days at 35th Ave Sew and Vac on February 28. The store has a limit of 10 attending at one time so we decided to have you sign up for 1 or more time slots 10-12:30 or 12:30-3:00 so please email me or text me (602-339-8746) if you want to attend. You will need to be on the list in order to attend. Also the store has a mask policy so the mask will need to be worn at all times. It is very important for us to respect and follow the store guidelines so we can get back to sewing! We will have the same guidelines as before, no supplies will be there and limited inventory drop off.
With tax time right around the corner, we are reaching out to our volunteers regarding the Arizona Charitable Tax Credit. Don’t forget you can designate your donation directly to Stitches of Love by placing a note in the comment section. Please read the following information from Karl.
I wanted to reach out to all of our dedicated volunteers after what was a most unexpected year.
We missed seeing you last summer and we’re hard at work planning this year’s Distribution. However, we aren’t quite sure what it will look like. It may be close to normal, it may be a drive-through (like the event we held for our military families in 2020), or it may be something in between. But rest assured, no matter what, we will deliver new clothes, shoes, backpacks, and hand-crafted Stitches of Love items to kids who desperately need them. For most of our students, we give them the only new clothes they get all year, so they’ll use them even if they can’t attend school in person.
We’re so grateful that you’re still as excited about our mission as we are. More kids than ever will need our help in 2021, so I want to make sure our most ardent supporters know about Arizona’s Charitable Tax Credit: a program that allows Arizona tax payers to donate to BTSCD at no cost to them. It’s true! If your household has an Arizona income tax liability, your donation amount is deducted from what you owe – dollar for dollar! If you’re able, I encourage you to take advantage of this unique opportunity to redirect your tax dollars to us. You know firsthand the impact we make and that you can trust us to put Arizona’s kids first! On behalf of the entire organization, thank you for the incredible support you give Back to School Clothing Drive!
What donations qualify for the Arizona Charitable Tax Credit?
Cash donations made to a qualified charitable organization are eligible. The maximum tax credit allowed for individuals is $400 and for married couples (filing jointly) is $800.
Do I have to donate the entire amount?
Not at all. Those are the maximum tax credit amounts, donations under that still qualify for the tax credit and are greatly appreciated.
Can I donate to more than one charity?
Absolutely. Just remember the limits are based on your total donations and are not per charity. If you donate $100 to three different charities your total is still under the maximum, so they all qualify.
Is this a tax deduction?
No. A tax deduction lowers the amount of your taxable income. This is a tax credit, so it lowers your tax liability.
What does “lowers your tax liability” mean?
The amount you owe is your tax liability. So if you file taxes in Arizona and owe $900 but you have a tax credit of $400, your tax liability is now only $500. The Arizona Charitable Tax Credit lowers your liability – dollar for dollar – based on your donation amount. The total you pay out ($900 in this example) doesn’t change, but you get to donate to a charity of your choice instead of paying it all to state taxes.)
What if I already paid my tax liability through payroll deductions or quarterly estimated taxes?
A tax credit is applied before payments, so if you owed $900 but made a $400 Arizona Charitable Tax Credit donation, you now only owe $500. Since you paid $900, you could get a refund of $400. This example assumes only one tax credit is being claimed. A donation doesn’t guarantee a refund.
What if I don’t owe as much as I donate?
The Arizona Charitable Tax Credit is non-refundable. If you only owe $200 in taxes but made a $400 donation, your tax liability is lowered to $0, but you would not receive a refund of $200. However, you can carry the unused tax credit amount ($200 in this example) forward for up to five years to claim later.
How do I donate?
You can make a donation to Back to School Clothing Drive online at www.btscd.com/taxcredit or you can mail a check to BTSCD at 360 E. Coronado Rd. #200, Phoenix, Arizona 85004.
How do I claim the credit?
It’s simple! Make a donation to us, save your receipt, and file AZ Form 321 with your taxes. Back to School Clothing Drive’s qualified charitable organization code is 20462.
Anything else I should know?
Yes, two things, actually: First, if you make a donation by April 15, 2021, you can still claim it on your 2020 state taxes.
Second, this is general information about how Arizona’s Charitable Tax Credit works. If you have specific questions about your taxable income, your tax liability, how this affects your federal income taxes, or your personal tax situation, please consult a tax professional.