Arizona Tax Credits
When you donate to organizations that provide assistance to qualifying charitable organizations; qualifying foster care organizations; public, charter, 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. There were several increases to the amounts that are eligible for the 2023 tax credits.
- Qualifying Charitable Organization (QCO) Tax Credit.* The QCO, formerly known as the Charitable Tax Credit, single or head-of-household credit is up to $421; for those filing jointly, it is up to $841. 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 Paz de Cristo. They provide free meals and clothing to the homeless community.
- 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. The QFCO single or head-of-household credit is up to $526; for joint filers, it is up to $1,051. 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 (STO).* This credit provides scholarship money to students attending private school. It is a maximum of $1,307 for single or head of household, and $2,609 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). 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. If you plan to contribute to the MFRF, do so soon as it tends to cap out quickly.
*To claim the first four credits listed above on your 2023 Arizona tax return, contributions must be made by April 15, 2024.
For questions or additional information, please contact Violet Michael at [email protected] or 602.776.6315.