The State of Arizona has several tax credits which work to decrease a resident’s income tax liability. All of the AZ tax credits are subject to limits and restrictions. See details and FAQs below. The AZ tax credits are not refundable. This means that you will only receive a benefit to the extent that you have an Arizona State tax liability. Contact our office if you need further information.
| Due Date (2021 Tax Year) |
Single Maximum | Married Filing Jointly Maximum |
Resources | |
|---|---|---|---|---|
| Charitable Organization Tax Credit | 4/15/2022 | $400 | $800 | Qualifying Charitable Organizations |
| Foster Care Tax Credit | 4/15/2022 | $500 | $1000 | Qualifying Foster Care Organizations |
| Public School Tax Credit | 4/15/2022 | $200 | $400 | Find an Arizona Public School Here |
| Private School Tuition Tax Credit | 4/15/2022 | $1,219 | $2,435 | Qualified Private School Tuition Organizations |
| Military Family Relief Fund Tax Credit | 12/31/2021 | $200 | $400 | Get the Form and Instructions Here |
Click or tap the name of any of the tax credits listed above for more information and FAQs.
Charitable Organization Tax Credit
Qualifying Charitable Organizations self-certify that funds they receive will provide services that meed immediate basic needs for needy families, low income residents, or those who are chronically ill or physically disabled.
More than 600 community organizations qualify for the QCO credit. The list of eligible organizations for 2016 is available online at http://www.azdor.gov/TaxCredits/ QualifyingCharitableOrganizations.aspx
Donations made to several “umbrella organizations,” such as most United Way campaigns, can qualify for the credit if the money is designated for a qualifying community organization.
No, only donations of money qualify. Non-cash donations, such as cans of food given to a food bank, may qualify as regular charitable donations, but not for the credit.
Taxpayers can claim up to $400 ($800 for married filers) for contributions made to a QCO. Tax benefit may be limited based on tax liability limitations.
Yes. If the allowable tax credit is more than your tax, the unused credit may be carried forward for up to the next 5 consecutive years’ income tax liability.
Contributions eligible for this credit can be made from January 1 of the tax year to April 15 of the following year. For contributions made after the end of the tax year, taxpayers may take the credit on either the current tax year’s return or on the return for the following year (the year when they were actually made).
Information on the Qualifying Charitable Organization Tax Credit can be found on the Arizona Department of Revenue website. https://www.azdor.gov/About/FAQs/QualifyingCharitableOrganization.aspx or by downloading Publication 710.
Foster Care Organization Tax Credit
Organizations self-certify that their organization provides ongoing services to at least 200 qualified individuals and spend at least 50% of their budget on providing services to individuals in the foster care system.
34 community organizations qualify for the QFCO credit. The list of eligible organizations for 2016 is available online at https://www.azdor.gov/Portals/0/RefundCredits/CertifiedFosterCareCharities2016.pdf
Donations made to several “umbrella organizations,” such as most United Way campaigns, can qualify for the credit if the money is designated for a qualifying community organization.
No, only donations of money qualify. Non-cash donations, such as cans of food given to a food bank, may qualify as regular charitable donations, but not for the credit.
Taxpayers can claim up to $500 ($1,000 for married filers) for contributions made to a QFCO. Tax benefit may be limited based on tax liability limitations.
Yes. If the allowable tax credit is more than your tax, the unused credit may be carried forward for up to the next 5 consecutive years’ income tax liability.
Contributions eligible for this credit can be made from January 1 of the tax year to April 15 of the following year. For contributions made after the end of the tax year, taxpayers may take the credit on either the current tax year’s return or on the return for the following year (the year when they were actually made).
Information on the Qualifying Foster Care Credit can be found on the Arizona Department of Revenue website. https://www.azdor.gov/About/FAQs/QualifyingCharitableOrganization.aspx or by downloading Publication 710.
Public School Tax Credit
Public schools, including charters, are eligible to receive tax credit contributions.
No, only donations of money qualify. Non-cash donations, such as cans of food given to a food bank, may qualify as regular charitable donations, but not for the credit.
The maximum credit is $400 for married taxpayers or $200 for single, head-of-household, or married-filing-separately taxpayers. In 2014, more than 260,000 taxpayers donated over $50 million to schools with this credit.
Yes. If the allowable tax credit is more than your tax, the unused credit may be carried forward for up to the next 5 consecutive years’ income tax liability.
Contributions eligible for this credit can be made from January 1 of the tax year to April 15 of the following year. For contributions made after the end of the tax year, taxpayers may take the credit on either the current tax year’s return or on the return for the following year (the year when they were actually made).
Information on the Qualifying Foster Care Credit can be found on the Arizona Department of Revenue website at https://www.azdor.gov/TaxCredits/SchoolTaxCreditsforIndividuals.aspx.
Private School Tuition Tax Credit
No. The money must be donated to a School Tuition Organization (STO) that provides scholarships or grants to students. The organization also must be certified by the Arizona Department of Revenue.
For the Tax Year 2021, the maximum credit is $2,435 for married taxpayers or $1,219 for single, head-of-household, or married-filing-separately taxpayers, adjusted for inflation. In 2015, nearly 47,800 taxpayers donated almost $36 million to schools with this credit.
Yes. If the allowable tax credit is more than your tax, the unused credit may be carried forward for up to the next 5 consecutive years’ income tax liability.
Contributions eligible for this credit can be made from January 1 of the tax year to April 15 of the following year. For contributions made after the end of the tax year, taxpayers may take the credit on either the current tax year’s return or on the return for the following year (the year when they were actually made).
More information on the Credit for Contributions to School Tuition Organizations can be found at https://www.azdor.gov/TaxCredits/SchoolTaxCreditsforIndividuals.aspx.
Military Family Relief Fund Tax Credit
This credit subsidizes donations made to a state fund that helps the families of military personnel. It pays for outlays such as household expenses and travel costs for family members accompanying a service member undergoing rehabilitation in a distant location.
No, only donations of money qualify. Non-cash donations, such as cans of food given to a food bank, may qualify as regular charitable donations, but not for the credit.
This credit is worth up to $400 for married couples filing jointly or $200 for others. The credit can’t exceed the amount donated.
Yes. If the allowable tax credit is more than your tax, the unused credit may be carried forward for up to the next 5 consecutive years’ income tax liability.
Contributions must be made before December 31. However, the statewide donation maximum is $1 million dollars, and the organzation has been hitting this mark earlier and earlier every year.
For more information on these programs, go to the website of the Arizona Department of Veterans Services at dvs.az.gov.