Arizona provides two separate nonrefundable tax credits for individuals who make contributions to charitable organizations: Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations. Tax credits are also available for donations to schools.
These tax credits are a way for Arizona taxpayers to direct their taxes to organizations and causes that are important to them.
Individuals making cash donations may claim donations as tax credits up to the allowable amount on their Arizona Personal Income Tax returns.
Tax credits provide a dollar-for-dollar reduction of your Arizona income tax liability. This means that a $400 tax credit saves you $400 in taxes. On the other hand, tax deductions lower your taxable income and are equal to the percentage of your marginal tax bracket.
The allowable 2021 credit for contributions to Qualifying Charitable Organizations is $400 for single and head of household taxpayers and $800 for married taxpayers filing a joint return.
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The allowable 2021 credit for contributions to Qualifying Foster Care Organizations is $500 for single and head of household taxpayers and $1,000 for married taxpayers filing a joint return.
For a list of qualifying organizations and more information on these or school tax credits, see tucne.ws/taxcredits at the Arizona Department of Revenue website or get a list of Southern Arizona organization at tucson.com/taxcreditcharities
You can donate and claim the credit for 2021 up until April 15, 2022. For more details, consult your tax professional.
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