The State of Arizona is awesome in that they offer several ways to receive a tax credit (not a tax deduction) for donations made to certain charitable organizations. The best part about this is that they give taxpayers until the tax return due date to make a donation that can qualify for the credit on their prior year tax filing! For instance, the State of AZ gives you until April 18th, 2023 to make the donation and it can be applied as a credit on your 2022 tax return. We break it down below.
Credit for Contributions to Qualifying Charitable Organizations
This credit is available for donations made to certain Qualifying Charitable Organizations that provide basic needs to Arizona residents. The maximum credit for donations made to these organizations for 2022 is $400 if Single, and $800 if married filing joint. The State publishes a list of qualifying organizations here: https://azdor.gov/sites/default/files/media/CREDITS_2023_qco.pdf
Credit for Contributions to Qualifying Foster Care Charitable Organizations
This credit is available for donations made to certain Qualifying Foster Care Charitable Organizations that provide basic needs to Arizona residents. The maximum credit for donations made to these organizations for 2022 is $500 if Single, and $1,000 if married filing joint. The State publishes a list of qualifying organizations here: https://azdor.gov/sites/default/files/media/CREDITS_2023_qfco.pdf
Credit for Contributions to Private School Tuition Organizations
This credit is available for donations made to certain Private School Tuition Organizations that provide scholarships for students enrolled in Arizona private schools. The maximum credit for donations made to these organizations for 2022 is $623 if Single, and $1,245 if married filing joint. The State publishes a list of qualifying organizations here: https://azdor.gov/sites/default/files/REPORTS_sto-i-list.pdf
Credit for Contributions to Certified School Tuition Organizations
This credit is available for donations made to certain Certified School Tuition Organizations that provide scholarships for students enrolled in Arizona private schools. The maximum credit for donations made to these organizations for 2022 is $620 if Single, and $1,238 if married filing joint. The State publishes a list of qualifying organizations here: https://azdor.gov/sites/default/files/REPORTS_sto-i-list.pdf
These credits are not refundable, and some may be able to be stacked on top of each other to maximize your AZ credits. Each credit requires reporting on a separate form attached to the taxpayer's AZ income tax return. We would recommend getting with a professional tax planner to discuss your eligibility for these credits and how they may benefit and/or impact your income taxes.
These credits are a great way for taxpayers to give back to their communities in lieu of paying income taxes.
The advice contained herein is our interpretation of IRS and/or state and local rules and not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS or local tax authority should assess related to this matter. The information on our Website is provided for your convenience only and is not intended to be treated as financial, investment, tax, or other advice. Nothing contained on the Website constitutes a solicitation, recommendation, endorsement, or offer by Genesis Accounting, PLLC. All content on this site is the information of a general nature and does not address the circumstances of any particular individual or entity. Nothing on the Website constitutes professional and/or financial advice, nor does any information on the Website constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the Website before making any decisions based on such information. You agree not to hold Genesis Accounting, PLLC, its agents, employees, contractors, and any affiliated companies liable for any possible claim for damages arising from any decision you make based on the information made available to you through the Website.
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