AZ Tax Credits

You can profit from making charitable contributions.  Make charitable contributions to reduce your State of Arizona tax liability dollar-for-dollar while claiming a deduction on your Federal income tax return as well.   Here’s how:

Credit for Contribution to Qualifying Charitable Organizations

Contribute to a Qualifying Charitable Organization that provides assistance to the working poor – up to $200 for single taxpayers or $400 for married filing joint.  For a list of Qualifying Charitable Organizations for the 2014 calendar year click here. Taxpayers may contribute an additional $200/$400 to a Qualifying Foster Care Charitable. Please be aware that the entire credit is limited to $400/$800. You may give up to $200/$400 to a Qualifying Charitable Organization and $200/$400 to a Qualifying Foster Care Charitable Organization OR you may give the entire $400/$800 to a Qualifying Foster Care Charitable Organization. For a list of Qualifying Foster Care Charitable Organizations for the 2014 calendar year click here. 

Public Schools

Make cash contributions or pay fees to a public or charter school for support of extracurricular activities or character education programs – up to $200 for single taxpayers or $400 for married filing joint.  To obtain a Department of Education sponsored listing of the public and charter schools within Arizona click here.

School Tuition Organization

Make a donation to a School Tuition Organization for scholarships to private schools – up to $528 for single taxpayers or $1,056 for married filing joint.  Claim an additional credit for making a donation to a School Tuition Organization if the amount contributed is greater than the maximum amount that can be claimed – up to $525 for single taxpayers or $1,050 for married filing joint. Unused amounts may be used in a future year.  For a list of School Tuition Organizations certified to receive donations for the individual income tax credit click here.

For example, give away $2,000 and end up with and end up with $2,700 if you get the full AZ credit and you pay federal taxes at the thirty-five percent rate.