![]() ![]() Maintain a receipt of your gift from the charity to provide a copy with your tax return.Donate to a certified charitable organization (QCO or QFCO), such as a 501(c)(3) organization like Phoenix Children’s.There are four steps to document your donationand claim your tax credits. ![]() How to document your donation and claim your Arizona tax creditsįortunately, the process for making a charitable contribution and claiming the Arizona Charitable Tax Credit is relatively straightforward. Credits that are not applied to tax obligations for the current tax year can be carried forward to future tax years (more on that below).Donations must be made to Qualified Charitable Organizations or Qualifying Foster Care Charitable Organizations that have been certified by the state of Arizona gifts to non-certified charities are not eligible for the AZ Charitable Tax Credit.Donations must be made in cash (property donations do not quality, nor do in-kind donations such as toys, books and services).Donations must be made by individuals (corporations, foundations, partnerships, etc.Please consult your tax advisor for advice on your specific tax situation. Here are some general guidelines for using the Arizona Charitable Tax Credit. Guidelines for the Arizona Charitable Tax Credit These tax credits provide dollar-for-dollar tax benefits, allowing taxpayers to reduce their state tax liabilities for each dollar donated to charities, up to the maximum allowable limits. The maximum credit for contributions to QFCOs is $1,000 for married filing jointly or $500 for single, married filing separately, and heads of household filers. The maximum allowable credit for contributions to QCOs is $841 for married filing jointly filers or $421 for single, married filing separately, and heads of household filers. The Arizona Charitable Tax Credit is a set of two nonrefundable individual income tax credits for charitable contributions to Qualifying Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs). Understanding the Arizona Charitable Tax Credit You should consult with your professional advisor(s) prior to acting on the information in this guide. No warranty or representation, express or implied, is made by Phoenix Children’s Foundation, nor does Phoenix Children’s Foundation accept any liability with respect to the information provided on our website. Read on to learn more, and then consult with your personal tax advisor for advice on your specific tax situation.ĭISCLAIMER: This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Taxpayers will find everything they need to know in order to take advantage of this and other Arizona state tax credits. These tax credits allow taxpayers to make charitable contributions and receive dollar-for-dollar reductions in their Arizona state tax liabilities.įortunately, here is the ultimate guide to the Arizona Charitable Tax Credit for the 2022 tax year – a true “deep dive” into the details. The state of Arizona provides a variety of individual tax credits, including the AZ Charitable Tax Credit and the Public School Tax Credit. Most taxpayers do not know how to take full advantage of Arizona’s state tax credits, including the ability to combine multiple tax credits and carry forward the tax benefits over several years. You’ve probably heard of the Arizona Charitable Tax Credit, but don’t know all the details about it.
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