Here’s what you need to know about claiming an Arizona tax credit for donations to charitable organizations.
A credit of up to $800 for married filing jointly and up to $400 for all other filers is available for cash contributions to a qualifying charitable organization (QCO).
These organizations include those that provide services to Arizona residents who receive temporary assistance for needy families (TANF) benefits, are low income residents, or have a chronic illness or physical disability.
The credit for contributions to QCOs is claimed on Arizona Form 321.
A credit of up to $1,000 for those filing as married filing joint and up to $500 for all other filers is available for cash contributions to a qualifying foster care organization (QFCO). A contribution to a QFCO does not qualify for, and cannot be included in, a contribution to a QCO claimed as a credit.
The credit for contributions to QFCOs is claimed on Arizona Form 352.
As of 2018, the Arizona Department of Revenue added a new reporting requirement for these credits.
A unique five-digit code has been assigned to each QCO and QFCO. This code must be included on your tax return for the credit to be accepted.
You can find code numbers for qualifying charitable organizations at tucne.ws/qco2020 and for qualifying foster care charitable organizations at tucne.ws/qfco2020.
Your donation receipt should include this number. For example, the Arizona Daily Star’s Sportsmen’s Fund Send A Kid to Camp code is 20450.
Taxpayers do not have to itemize deductions to claim a credit for contributions to charities that provide assistance to the working poor.
Many well-known organizations assist the working poor and qualify for this deduction.
