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Dear Friends and Fellow Taxpayers,
As long-time Arizona residents and big fans of our Valley youth, Karen and I applaud our state for giving us the choice to take up to $400 off our state tax bill and give it to HomeBase Youth Services (Working Poor Tax Credit). Arizona’s Working Poor Tax Credit offers every resident this dollar-for-dollar tax credit. In addition, your donation is deductible on your Federal taxes if you itemize deductions.
Like so many of you who are grandparents and community supporters, we are committed to investing in our youth -- they are our future. We invite you to join us this year and experience the personal and community rewards of this opportunity.
 Karen and Bob Hobbs
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Save up to $400* on your Arizona State Taxes and Save Homeless Youth
If you have the choice to pay up to $400 to the State of Arizona in taxes or give that money to HomeBase Youth Services (Working Poor Tax Credit), which would you choose?
With Arizona's Working Poor Tax Credit you can receive a dollar-for-dollar tax credit, up to $400*, on your state income taxes while helping homeless youth - at no additional cost to you. In fact, you may earn a return on your investment if you qualify!
For Example: Assume you are filing a joint Arizona Personal Income Tax return and you owe the State of Arizona $1,500.00
You decide to make the maximum contribution of $400.00 to HomeBase Youth Services for the Working Poor Tax Credit; your state tax bill is now reduced to $1,100.00 |
| Your Original Tax bill | $1,500.00 |
| Your HomeBase Youth Services Working Poor Tax contribution | - $400.00 |
| Your revised tax bill... | $1,100.00 |
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Since you will qualify for a charitable contribution deduction for Federal income tax purposes and the State of Arizona may reduce your tax burden by 100% of the amount of your donation, you could actually save on your Federal income taxes while helping HomeBase Youth Services continue it's work!
* - Maximum amount of Working Poor Tax Credit depends upon your filing status. Beginning in tax year 2006 and beyond, married couples filing jointly have a maximum credit of $400. Taxpayers filing as single or head of household have a maximum credit of $200.You also may be eligible for the Public School Tax Credit and the Private School Tuition Credit allowing you to reach a potential maximum tax credit of $1,800.
Important Note: HomeBase Youth Services is not a tax advisor. Always contact a qualified tax professional for expert advice on your specific tax situation. For more information on this tax credit (ARS 43-1088), please contact the Arizona Department of Revenue at
(602) 255-3381, or access their website at www.revenue.state.az.us.
Working Poor Tax Credit How it Works
Establish a baseline year and amount for charitable deductions (as early as 1996). The credit is computed on the amount given over and above the baseline amount.
Make a tax-deductible donation to HomeBase Youth Services, which qualifies for a charitable contribution deduction for Federal income tax purposes.
Itemize your charitable deductions on Federal Schedule A, including this donation for a Federal Tax deduction.
Your "add back" is done on Arizona Schedule A (Arizona law does not allow you to take this as both a deduction and a credit).
Complete, if necessary, Arizona tax forms 321 and 301.
On Page One of Arizona Form 140, you may take a dollar-for-dollar credit*.
The State of Arizona will reduce the amount you owe or increase your refund, up to $400*!
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HomeBase Youth Services is a qualifying 501(c) (3) non-profit organization, founded in 1991, to provide a full continuum of care to at-risk and homeless youth in Arizona. Programs and services include: Street Outreach, Mobile Medical Outreach, Resource Program, Transitional Living Program, Employment and Education Services, Mental Health and Substance Abuse Services, and an Independent Living Program.
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