Written by Marc R Barnes EA
August 08, 2012
There are many ways people in Arizona can do a lot of good for others, and it won’t cost them a dollar. The State of Arizona offers tax credits that allow Arizonans to make contributions to schools and non-profit organizations and receive a dollar for dollar tax credit on their tax return. In order to take advantage of these tax credits, your contribution must be received and processed by the organization by December 31st.

Arizona Tax Credit Questions

How do I claim the credit

Make a qualifying contribution on or before December 31st. Report the name of the qualifying charitable organization or school, the address, and the amount of the contribution on the proper form provided by Arizona Department of Revenue ( Form 321, Form 322 or Form 323) and submit with your State tax return.

Do I claim my contribution as a credit or a deduction?

You may only claim a tax credit for your charitable contribution on your Arizona state return if the organization you donated to is considered a Qualifying Charitable Organization/ School. A complete listing of Qualifying Charitable Organizations is published on the Department of Revenue’s website. Donations made to organizations not listed on the department’s published website are typically allowable as deductions. You cannot claim both a deduction and a credit for the same charitable contribution on your Arizona return.

How do I know which organization is eligible for my donation?

You can view the listing of qualifying charitable organizations on the Department of Revenue website at any time. You can also ask the charitable organization to see a copy of the qualifying charitable organization certificate issued by the department to the charitable organization. You can also contact the department to see if the charitable organization is a qualifying charitable organization.

Working Poor Tax Credit


An individual income tax credit is available for contributions that provide assistance to the working poor.

What’s the maximum amount of the tax credit?
$200 single or head of household
$400 married filing joint

Who may claim this tax credit?
This tax credit is only available to individuals.
Corporations may not claim this tax credit.
A partnership may not pass this tax credit through to its partners.
An S Corporation may not pass this tax credit through to its shareholders.

Requirements
Contribution must be made to a qualifying organization.
You must itemize deductions on your Arizona tax return for the same year you claim the credit.
Credits in excess of your tax liability will be carried forward to future tax years.

Credit for Public Schools


An individual may claim a credit for making contributions or paying fees to a public school for support of extracurricular activities or character education programs.

What’s the maximum amount of the credit?
$200 single or head of household.
$400 married filing joint.

Who may claim this credit?
This credit is only available to individuals.
Corporations may not claim this credit.
A partnership may not pass this credit through to its partners.
An S Corporation may not pass this credit through to its shareholders.

Requirements
Contribution must be made to a qualifying organization.
Credits in excess of your tax liability will be carried forward to future tax years.

Private School Tuition Credit


An individual may claim a credit for making a donation to a School Tuition Organization for scholarships to private schools.

What’s the maximum amount of the credit?
$500 single or head of household.
$1000 married filing joint.

Who may claim this credit?
This credit is only available to individuals.
Corporations may not claim this credit.
A partnership may not pass this credit through to its partners.
An S Corporation may not pass this credit through to its shareholders.

Requirements
Contribution must be made to a qualifying organization.
Credits in excess of your tax liability will be carried forward to future tax years.

Topic: Credits and Deductions