There are various tax credits offered through the State of Arizona that support local nonprofits and (summarily) redirect what would be your Arizona tax dollars to these nonprofits. This article addresses the tax credits available to individual tax return filers, with dollar limits that vary based on your filing status. 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 (5) years. Please keep copies of your receipts for your tax records and provide them to us.
Please be sure to consult the AZDOR lists of eligible organizations each year before giving to organizations for current year tax credit donations. The lists change each year, and organizations may no longer be listed as eligible for tax credits in the current year.
The chart for the dollar limits based on filing status is at the bottom of this article.
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
- Cardiopulmonary resuscitation training (CPR)
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.
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.
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.
IMPORTANT REMINDER NOTE FOR 2019 FOSTER CARE TAX CREDIT DONATIONS: IF YOU DONATE TO A FOSTER CARE ORGANIZATION, YOU MUST MAKE THE TAX CREDIT DONATION TO AN ORGANIZATION LISTED ON THE 2019 LIST (LINK ABOVE). SOME NONPROFITS CAME OFF OF THE FOSTER CARE LIST EFFECTIVE 12/31/2018, SO JUST BECAUSE AN ORGANIZATION WAS ELIGIBLE FOR YOUR 2018 FOSTER TAX CREDIT DOES NOT MEAN IT WILL BE ELIGIBLE FOR THE 2019 FOSTER CARE TAX CREDIT. FOR EXAMPLE, CASA DE LOS NINOS WAS A 2018 FOSTER CARE TAX CREDIT ORGANIZATION, AND IS NOT A FOSTER CARE TAX CREDIT ORGANIZATION FOR 2019 TAX CREDIT PURPOSES. IT IS ELIGIBLE FOR THE QUALIFYING CHARITABLE ORGANIZATION TAX CREDIT IN 2019.
Military Family Relief Fund (MFRF)
**2019 CAP HAS BEEN REACHED ON THE MILITARY FAMILY RELIEF FUND CREDIT – UNABLE TO DONATE FOR TAX YEAR 2019 AS OF THE DATE OF THIS ARTICLE**
The Arizona Military Relief Fund provides financial assistance to families of currently deployed service members, post 9/11 military members, and veterans. 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 https://dvs.az.gov/ for more information.
2019 Arizona Tax Credits
|Maximum Credit||Single||Married Filing Joint|
|Public Schools Credit||$200||$400|
|Private School Tuition Credits||$1,135||$2,269|
|Credit for Qualifying Charitable Organizations||$400||$800|
|Credit for Foster Care||$500||$1,000|
|Military Family Relief Fund||$200||$400|
|Total Potential Credits||$2,435||$4,869|
*Amounts contributed for the credit between January 1, 2020 and April 15, 2020, may be used once as a tax credit on either your 2019 or 2020 Arizona income tax return. Be sure to designate the appropriate tax year when making the contribution if made between 1/1/20-4/15/20. For amounts donated 01/01/2020-04/15/2020, be sure to consult the 2020 AZDOR tax credit lists for eligible organizations (not available as of time of this article) to ensure your donation qualifies for a tax credit donation.
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.