You may have three opportunities to provide financial support related to issues addressed at the 2008 Town Halls, "Who Will Teach Our Children?" and "Housing Arizona" through Arizona state tax credits.  The deadline for contributions is Dec. 31, 2008.  Arizona law allows you to contribute to a public school Tax Credit Organization, to a School Tuition Organization (STO), and to a charitable organization serving low-income people.
 
Carol Peck, Arizona Town Hall member and president and CEO of the Rodel Foundation of Arizona, urged readers to invest in our schools in her Arizona Republic column on Nov. 16.  Please consider making a donation to a public school through the Arizona Extracurricular Tax Credit, which will pay you back dollar-for-dollar up to $200 for an individual or $400 for a couple when you file your state taxes.  Carol noted, "Even in the best economic years, most tax-credit donations come from middle- and upper-income families to benefit the schools in their own neighborhoods.  Schools in low-income communities miss out because their families can't afford to give.  But you can change that by directing your contribution to a school that needs it most."  A list of schools that would appreciate a contribution is available at www.rodelaz.org.
 
In addition, school tuition organizations provide scholarships or grants to qualified private schools in Arizona.  For 2008, married couples filing jointly may contribute up to $1,000 and single taxpayers or couples filing separately may contribute up to $500 to a school tuition organization.  A tax credit is subtracted directly from the income tax withheld or owed to the state.  A list of these organizations is available at www.revenue.state.az.us.
 
Finally, the Charitable Contributions Tax Credit is available for some people who contribute to a charity that spends at least 50% of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families benefits or are considered low-income households. You can take a tax credit of up to $200 in new charitable contributions, if you file as a single person, or up to $400, if you file jointly.

Your tax credit is equal to any increase over the amount you gave in your baseline year. If you itemized deductions and deducted charitable contributions in 1996, that is your baseline year.  If you did not itemize and deduct charitable contributions in 1996, then your baseline year is the first year after 1996 that you did so.  Anything you give this year over the amount you gave in your baseline year may be eligible for the tax credit.  Charities can tell you if they qualify or go to www.azdor.gov for a list.
 
Please consult your tax adviser for specific tax questions.