Many of our clients and friends routinely ask us how to utilize the State of Arizona tax credits to their advantage while helping out great organizations in the State of Arizona. It’s a way that you can determine where your tax dollars are allocated to be utilized, outside of the political and budgetary constraints of our state.
Organizations
https://azdor.gov/sites/default/files/2023-05/CREDITS_2023_qco.pdf This is the link for Charitable Credits
https://azdor.gov/sites/default/files/2023-03/CREDITS_2023_qfco.pdf This is the link for Foster Care Credits
https://azdor.gov/sites/default/files/2023-06/REPORTS_sto-i-list.pdf This is the link for Private School Credits
The links above are to the State of AZ website. It will provide you with lists of the approved Charitable, foster, and tuition organizations that are available to you.
Credit Limits
There are four tax credits available to each and every State of Arizona taxpayer
| Qualified Charitable Organization that assists the working poor | 421 single | 841 married |
| Fees or donations to Public Schools | 200 single | 400 married |
| Foster Care Organizations | 526 single | 1,051 married |
| Private Tuition Organizations | 655 single | 1,308 married |
| Secondary credit for Private Tuition Organizations (switcher/overflow) | 652 single | 1,301 married |
| Total Private Tuition org credits available are the sum of these two | 1,307 single | 2,609 married |
Timing of your donations
All tax credit donations can be donated up until April 15th of the following year and applied back to the prior year.
Rules and Considerations for Tax Credits
The credits are NON REFUNDABLE by the state. You can be refunded UP TO your total tax to the state (effectively refunding you the state withholding that you have paid in) but any tax credit donations made that are in excess of your total state tax obligation will be carried forward to the following tax year.
For example, if you are married and make the maximum contribution of all credits, it would total $4,901.00. This would come directly off your State of AZ tax bill.
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