charitable contributions;
standard deduction
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Committee on Human Services |
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Committee on Ways and Means |
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Caucus and COW |
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Third Read |
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As Passed the House |
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HB 2448 amends current standard deductions for Arizona income tax to include charitable contributions.
Currently, taxpayers who itemize on their federal taxes may claim a deduction for charitable contributions. These contributions must be made to qualified charitable organizations and cannot exceed 50 per cent of the taxpayer’s adjusted gross income. The same standards for charitable deductions on an itemized income tax apply to Arizona state income tax. Presently, charitable deductions cannot be claimed by taxpayers that do not itemize or use the standard deduction.
In early February, federal legislation was introduces that allows for a standard deduction of charitable contributions up to $400 for an individual and $800 for couples who do not file an itemized federal income tax. HB 2448 allows for a standard deduction for charitable contributions on Arizona income taxes.
· Allows a taxpayer to claim charitable contributions allowed by Internal Revenue Code as a standard deduction on state income taxes.
· Requires a minimum $200 contribution by an individual or married couple filing separately in order to claim the standard deduction.
· States a minimum $400 contribution by a married couple filing joint or a single person claiming head of household to claim the standard deduction.
· Establishes the maximum amount allowed:
· 20 per cent of federal itemized deduction for 2002 taxable year
· 40 per cent of federal itemized deduction for 2003 taxable year
· 60 per cent of federal itemized deduction for 2004 taxable year
· 80 per cent of federal itemized deduction for 2005 taxable year
· 100 per cent of federal itemized deduction for 2006 taxable year
The proposed strike-everything amendment to HB 2448 establishes a means test for the permanent guardianship subsidy program.
Currently, the Department of Economic Security (DES) may provide a guardianship subsidy to foster parents who become permanent guardians, which provides an alternative to long term foster care. The foster parent applicant must demonstrate that the child or a responsible person on behalf of the child has applied for all state and federal benefits which the child is entitled to, such as temporary assistance for needy families (TANF). Any benefits received reduces the amount of the subsidy. DES determines the appropriate amount of the subsidy, which is not to exceed the maintenance payments allowable for an adoption subsidy. The subsidy is discontinued upon termination of the guardianship, the death of the child, the child no longer resides with the guardian, the child reaches 18 years of age or the applicant fails to comply with requirements. There are currently no provisions that base the subsidy on the income of the family desiring guardianship.
· Requires DES to establish a means test for the permanent guardianship program.
· Excludes families with a gross income over 300 per cent of the federal poverty guidelines from eligibility.
· Stipulates DES shall create a sliding scale for families whose gross income is between 200 and 300 per cent of the federal poverty level.
· Requires DES to modify the TANF state plan as necessary to implement these provisions.
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45th Legislature
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Second Regular Session 2 March
18, 2002
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