When you donate to organizations that provide assistance to qualifying charitable organizations, qualifying foster care organizations, public and private schools, and the Arizona Military Family Relief Fund, you can receive a dollar-for-dollar tax credit on your Arizona state return. Below are descriptions of the various tax credits and links to qualifying organizations. The only change for 2020 was a small increase to the private school donation limits.
- Qualifying Charitable Organization (QCO) Tax Credit.* The QCO doubles the allowable amount of what formerly was known as the Charitable Tax Credit. Extended to the 2019 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 that are low income, chronically ill or have physically disabled children. Click here for a complete list of qualifying organizations. If you need a recommendation, we support the Central Arizona Dental Society Foundation. It provides free dental care for those that cannot afford it.
- The Qualifying Foster Care Organizations (QFCO) Tax Credit.* The QFCO, which is also new, is similar to the QCO but is intended for foster-care community services. Extended to the 2019 tax year, the QFCO single or head-of-household credit is up to $500; for joint filers, it is up to $1,000. Click here for a complete list of qualifying foster care organizations. If you need a recommendation, we support Arizonans for Children, which provides children in foster care with assistance and family placement.
- The Public/Charter School Tax Credit.* This 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. Click here for a complete list of public schools. If you need a recommendation, we support Longview Elementary, a public school in the Osborn School District that serves a low income community.
- The Private School Tuition Credit.* This credit provides scholarship money to students attending private school. It is a maximum of $1,183 for single or head of household, and $2,365 for joint filers. Click here for a complete list of qualifying private school organizations. If you need a recommendation, we support Pappas Kids Schoolhouse Foundation. It is an organization that assists with the educational needs of low-income, homeless, and at-risk Arizona youth and their families.
- The Arizona Military Family Relief Fund (MFRF). **CLOSED! 1 MILLION CAP HAS BEEN REACHED** 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 million for refundable Arizona tax credits. Single or head-of-household taxpayers can take up to a $200 tax credit; joint filers, up to $400. In 2019, the $1 million cap was reached by mid-August. Make your donation as soon as possible to ensure you get in before the cap is reached.
*To claim these credits on your 2020 Arizona tax return, contributions must be made by April 15, 2021.