Donations

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Tax Credit Form 321

Cash Donations

Click here to learn more about charitable tax credit from the Arizona Department of Revenue.

The Arizona State Charitable Tax Credit allows you to reduce your current year’s state tax bill by up to $400 ($200 single taxpayers) when you write a check to Habitat for Humanity of the West Valley.

To qualify for this tax credit:

• Your donation must be given to a state approved charity such as Habitat for Humanity of the West Valley.

• You must have itemized deductions and have deducted charitable contributions on at least one tax return since the year 1996.

• Your charitable giving for this year must exceed what you gave in 1996. The amount of tax reduction that you can claim, up to $400, will be equal to the amount that you’re giving total from this year exceeds your giving total in 1996. For example, if you gave $1,000 to charity in 1996 and $1,400 to charity this year, you can reduce your state tax bill by $400 when you make a donation in that amount to our organization.

• File a simple form with your tax return. You must have an Arizona state tax liability to do so.

Stock Gifts

Please notify Karen Tremper, Director of Development for Habitat for Humanity of the West Valley for transfer instructions. (623) 583-2417.

IRA Distributions

Charitable IRA Rollover!

If you are age 70½ or older, new legislation now allows you to make cash gifts totaling up to $100,000 a year from your traditional or Roth IRA to qualified charities without incurring income tax on the withdrawal. This is good news for people who want to make a charitable gift during their lifetime from their retirement assets, but have been discouraged from doing so because of the income tax penalty. The provision is effective for tax years 2006 and 2007 only, so you must act by December 31 to take full advantage.

Details

Charitable IRA Rollover Provision

On August 17, President Bush signed H.R. 4, the Pension Protection Act of 2006, into law. This bill contains a two-year IRA Charitable Rollover provision that allows people age 70½ or older to exclude up to $100,000 from their gross income in tax years 2006 and 2007 for cash gifts made directly to a qualified charity.

The new provision permits distributions from traditional IRAs or Roth IRAs to qualified public charities and private operating foundations as described in IRC 170 (b)(1)(A). Whereas such distributions were previously income taxable, they are now excludable from gross income, eliminating the income tax penalty for such charitable gifts. The following limitations and restrictions apply:

• The individual for whose benefit the plan is maintained must have attained the age of 70½ or older at the time of gift.

• Qualified charitable distributions may not exceed $100,000 in the aggregate in any taxable year.

• The provision applies to tax years 2006 and 2007 only. Qualified distributions must be made by December 31 of each year.

• Qualified distributions must be made directly to the charity by the plan trustee. Contact your plan trustee for information on how to initiate a transfer.

• Qualified charitable distributions may be excluded from gross income for Federal Income tax purposes. However, no federal income tax deduction is available. Certain states may not exclude gift amounts withdrawn from an IRA for state income tax purposes.

• Only outright gifts are eligible. Distributions to charitable gift annuities, charitable remainder trusts, pooled income funds and other split-interest arrangements do not qualify for special tax treatment.

• Qualified contributions may be counted toward the Minimum Required Distribution (MRD) for a donor’s IRA accounts.

• Qualified contributions are not subject to the deductibility ceiling (50% of AGI) or the 2% rule that requires that itemized deductions be reduced by 2% of AGI in excess of $150,500 for tax year 2006.

Gifts from retirement accounts other than IRAs—such as 401k, 403b, and SEP accounts—are not eligible. Donors may be able to make qualified transfers of money.

• Learn About Planned Giving
• Learn about how to donate to our Home Improvement Store.

ALL GIFTS to Habitat for Humanity of the West Valley are tax deductible.

DONATE ONLINE or mail your donation to:
Habitat for Humanity of the West Valley
9133 NW Grand Avenue, Suite #1
Peoria, AZ 85345

For more information about how you can become a donor, please contact Karen Tremper, Director of Development at (623) 583-2417.