We would like to suggest you consider the great tax credit benefits offered through the State of Arizona. The first four (4) credits are non-refundable and provide a dollar-for-dollar credit towards your Arizona income tax liability. If your total tax credit contributions exceed your tax liability, the unused portion can be carried forward for up to five years. Of course, even if you are not able to claim the Arizona tax credit for a donation, it is still generally eligible as a Federal itemized deduction. It is a win-win idea! Please keep copies of your receipts for your tax records and provide them to us. See below for more details:
Public/Charter Schools *
Contributions made or fees paid to both Arizona public and Arizona charter schools are eligible for this credit. Fees paid for support of the following are eligible for this credit: extracurricular activities such as field trips, sports and fine arts, standardized testing fees for college readiness, preparation courses and material for standardized testing, character education programs, assessments for career/technical preparation programs or cardiopulmonary resuscitation training.
Private School Tuition Organizations *
There are two (2) private school tuition tax credits. Taxpayers that donate the maximum amount under the first tax credit are eligible to make the additional (second) credit donation. Your donation will not qualify for the tax credit if you designate a student beneficiary. The link to the list of eligible organizations for this tax credit can be found here. The link is also available on our website at “State Tax Links” under “Resources”.
Qualifying Charitable Organizations (formerly Working Poor Credit) *
Cash contributions paid to certain charities that provide assistance to residents of Arizona who either receive Temporary Assistance for Needy Families benefits, are low income residents of Arizona or are children who have a chronic illness or physical disability are eligible for this credit. The list of eligible organizations at the Arizona Department of Revenue’s website can be found here. The list is also available on our website at “State Tax Links” under “Resources”.
Foster Care Charitable Organizations *
Cash contributions paid to qualifying foster care charitable organizations are eligible for this credit. The list of eligible organizations at the Arizona Department of Revenue’s website can be found here and is available on our website at “State Tax Links” under “Resources”.
Military Family Relief Fund (MFRF)
This credit is available through 2018. Unlike the others, this credit cannot be carried forward and is available only to taxpayers receiving a receipt letter from MFRF. Donations to this fund are capped at $1 million annually. See AZ Department of Veteran’s Services at www.azdvs.gov for more information. 2017 CAP REACHED AS OF 10-31-17.
|Maximum Credit||Single||Married Filing Joint|
|Public Schools Credit||$ 200||$ 400|
|Private School Tuition Credits||$1,089||$2,177|
|Credit for Qualifying Charitable Organizations||$ 400||$ 800|
|Credit for Foster Care||$ 500||$ 1000|
|Military Family Relief Fund||$ 200||$ 400|
|Total Potential Credits||$2,389||$4,777|
*Amounts contributed for the credit between January 1, 2018 and April 15, 2018, may be used once as a tax credit on either your 2017 or 2018 Arizona income tax return.
We are always available to answer any Arizona tax credit questions or any other tax questions you may have. Please contact our office at (520) 886-3181.