Arizona provides tax credits for contributions made to various organizations.
- Qualifying Charitable Organization (QCO) Tax Credit, which doubles the allowable amount of what formerly was known as the Charitable Tax Credit. Extended to the 2018 tax year, the QCO single or head-of- household credit is up to $400; for those filing jointly, it is up to $800. Like its predecessor, the QCO supports organizations providing assistance to Arizona residents who are low income, chronically ill or have physically disabled children.
The Qualifying Foster Care Organizations (QFCO) Tax Credit, which also is new, is similar to the QCO but is intended for foster-care community services. Extended to the 2018 tax year, the QFCO single or head-of-household credit is up to $500; for joint filers, it is up to $1,000.
- The Public/Charter School Tax Credit supports extracurricular activities that require students to pay a fee in order to participate. Taxpayers are not required to have children to take the credit, which is $200 for single or head-of-household, and $400 for joint filers.
- The Private School Tuition Credit provides scholarship money to students attending private school. It is a maximum of $1,107 for single or head of household, and $2,213 for joint filers.
Please note: to claim one of the above credits on your 2018 Arizona tax return, contributions must be made by April 15, 2019.
- The Arizona Military Family Relief Fund (MFRF) is administered by the Arizona Department of Veterans’ Services and helps families of injured or killed service members with special expenses. Certain cash contributions to the fund qualify for a credit. The fund has an annual cap of $1-millon for refundable Arizona tax credits. Single or head-of-household taxpayers can take up to a $200 tax credit; joint filers, up to $400. This year the donations can be made online.
The Military Family Relief Fund was filled up August 28, 2018 – please do not send anymore checks, this year, as they will be returned. They are ineligible for the credit for 2018.