FAQ
Response
to your frequently asked questions...
-
What is this about sales taxes being deductible
again?
This is true. In 1986, tax law changes took away the
deduction for state and local sales taxes. The 2004 tax
bill brought them back. You'll have your
choice
between taking a
deduction for the state and
local sales taxes for 2004 OR
the
Arizona
income taxes you paid in 2004.
You can determine your sales tax deduction one of two ways:
By adding up the sales taxes on all of your receipts for
the year or by using the IRS tables plus taxes on major
purchases such as cars and boats.
BUT those IRS tables only compute STATE taxes, not county
or local! So, if you live in an area that has local sales
taxes (and who doesn't?) then you'll need to know what your
local tax rate(s) is(are) in order to add those taxes to
the amount in the IRS table.
Since Congress didn't pass this legislation until October
2004, most taxpayers will not have kept their receipts for
the year and will be "stuck" using the tables, plus local
taxes, plus taxes on major purchases.
-
What is the Arizona Schools Tax Credit?
Arizona offers taxpayers a dollar-for-dollar tax credit, up
to $625 for married couples filing jointly and up to $500
for individuals, when they send a tuition tax credit
contribution to a qualified School Tuition Organization.
Brochures for the Arizona School Choice Trust and the
Arizona Episcopal Schools Foundation are available by
clicking on the links. For a complete list of qualified
organizations, click
here.
-
Get your refund back MUCH faster!
Don't wait for the government to print up a refund check,
stuff it in an envelope, and then mail it to you. Put your
bank information on the return right above your signature
and they'll wire it there directly. That will save up to 4
weeks in getting your refund to you.
Make sure that owner of the bank account is titled to the
taxpayer. If you are filing jointly, it must be a joint
bank account.
