Arizona Charitable Tax Credit Donations
Child & Family Resources, Inc. is a qualified charitable organization (“QCO”, code 20343)
under the Arizona Charitable Tax Credit provisions. The QCO tax credit is a nonrefundable
credit that allows taxpayers to direct how they want their tax dollars to be spent, based on
cash contributions made to eligible organizations.
The maximum allowable limit for the dollar-for-dollar tax credit match for a QCO is $421 for an individual and $841 for married filing jointly. Married filing separately and heads of households filers also have $421 limits each.
How much can I donate each tax year to qualified charitable organizations (QCOs) like Child & Family Resources, Inc?
You can donate however much you would like; however, the QCO credit is capped at:
1. Single, head of household or married filing separate filing statuses: $400
2. Married filing join filing status: $800
Yes! The Arizona Department of Revenue keeps an updated list of QCOs on their website. You can donate to multiple QCOs and take the credit up to the annual limit.
Cash contributions (such as contributions made via credit card or check) qualify for the credit. Noncash contributions (such as donations of household items,toys, or clothing) do not qualify for the credit.
All the information needed to claim the credit should be found on the donation receipt/letter received from the organization after the donation is made. The QCO tax credit is claimed on Arizona Form 321 and the following information is needed to complete the form:
1. The organization’s name
2. Donation date
3. Donation amount
4. Qualified charity code (Child & Family Resources, Inc.’s code is 20343)
Unused credits can be carried forward and used on your future Arizona individual income tax returns for five years. Ex: You donate $400 to Child & Family Resources, Inc. during 2022 but your Arizona tax liability is only $150.$150 of the credit is utilized on your 2022 Arizona income tax return to bring your tax liability down to $0. A credit of $250 will carryforward to be used on your 2023 return, with any remaining unused amount carried forward to 2024, etc.
Yes! Arizona has multiple types of credits available to taxpayers, including credits to public schools, private school tuition organizations, and qualified foster care organizations (QCFOs). Each credit has its own annual limit and list of qualifying organizations. Check out the Arizona Department of Revenue’s tax credits website here for more information on each credit type, including the list of qualified organizations for each credit.
Donations can be made either during the calendar year, or between January 1st and tax day (April 15th – April 18th) of the following year and still count as prior year donations. Ex: a donation made between January 1st and April 17th, 2023 can be applied towards the 2022 tax year if the taxpayer chooses.
Main AZ tax credits page: Tax Credits | Arizona Department of Revenue (azdor.gov)
▪ 2022 qualified charitable org (QCO) list: CREDITS_2022_qco.pdf (azdor.gov)
▪ 2022 qualified foster care charitable org list (QFCO): CREDITS_2022_qfco.pdf (azdor.gov)
▪ List of public schools and their school district: PUBLICATION_ADESchoolListing.pdf (azdor.gov)
▪ List of private school tuition organizations: REPORTS_sto-i-list.pdf (azdor.gov)
AZ Tax Credit Funds website: Start the Process – AZ Tax Credit Funds
▪ Tucson Tax Credit Funds website: Start the Process – Tucson Tax Credit Funds
▪ AZ Military Family Relief Fund website: Military Family Relief Fund – 2022 | Department of Veterans’ Services (az.gov)
▪ An additional credit option with a $200 S, $400 MFJ annual limit. Donations are limited to $1M in total per year. Usually reaches this cap during the fall. If a donation is made towards this program, claim on Form 340.
Support Child and Family Resources to Make a Difference
We hope we’ve helped you in understanding how to best utilize your Arizona state tax credits. When
you are evaluating charitable organizations for your next tax credit donation, please consider supporting
Child and Family Resources. With your donation, we can make a difference in the lives of children across
the state of Arizona!
DISCLAIMER: This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult with your professional advisor(s) prior to acting on the information in this guide.