If you typically make Arizona tax credit donations, this article should help you!

As we reach the end of the year, one of the questions we get the most is what Arizona charitable contribution credit donations can be made.

 In August of 2018, the tax law changed, so you can no longer deduct these contributions on your federal tax return.

 Even if you aren’t going to benefit from the federal deduction, you may still believe that it is worthwhile to make a contribution to an AZ tax credit charity while getting a dollar for dollar benefit on your Arizona taxes.

 In addition, you have to actually owe Arizona taxes in order to get a benefit for the tax credit donations.

 Please remember, that these credits are not available for grants from your donor advised fund or private foundation.

 ARIZONA 2020 TAX CREDITS

Separate and apart from the federal deduction issues discussed above, a donation made after December 31, 2020 but before April 15, 2021 may be applied to either 2020 or 2021 and is considered to have been made on 12/31/20 for state purposes only. Credits are non-refundable. Unused credits carry forward for five years.

 Public Schools (AZ Form 322)

A credit for contributions of up to $400 for couples filing jointly, and $200 for all other filers is available for payments of fees to an AZ public school or charter school for support of extra-curricular activities or character programs.

 Private School Tuition Organizations (AZ Form 323)

A credit for contributions to a Private School Tuition Organization of up to $1,186 for couples filing jointly, and $593 for all other taxpayers. The contribution provides scholarships or grants to qualified elementary and high schools. It cannot be designated for the direct benefit of your dependent, but can benefit a relative.

 Certified School Tuition Organizations (AZ Form 348)

A credit for contributions to a Certified School Tuition Organization of up to $1,179 for couples filing jointly, and $590 for all other taxpayers. This credit is only available to individuals that first donated the maximum amount allowed under the Credit for Contributions to Private School Tuition Organizations (AZ Form 323) above.

 Qualifying Charitable Organizations (AZ Form 321)

A credit of up to $800 for couples filing jointly, and $400 for all other filers is available for contributions to a qualified charitable organization. 

See https://azdor.gov/sites/default/files/media/CREDITS_2020_qco.pdf for a list of Qualifying Charitable Organizations for 2020.

 Qualifying Foster Care Charitable Organizations (AZ Form 352)

A credit of up to $1,000 for couples filing jointly, and $500 for all other filers is available for contributions to a qualified foster care charitable organization.

See https://azdor.gov/sites/default/files/media/CREDITS_2020_qfco.pdf for a list of Qualified Foster Care Charitable Organizations for 2020.