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.
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