Understanding state tax credits...(and tax deductions)

DISCLAIMER: Always consult with a tax advisor to determine if a charitable donation or portion of a charitable donation is tax deductible or qualifies for a state tax credit.

Understanding state tax credits...(and tax deductions)

DISCLAIMER: Always consult with a tax advisor to determine if a charitable donation or portion of a charitable donation is tax deductible or qualifies for a state tax credit.

How do I know if my donation is tax-deductible (federal or state)?

FEDERAL TAX RETURNS: All Arizona Gives participating organizations are 501c3 organizations. Donations can be itemized. A donation cannot be reported/claimed as both a federal deduction and an Arizona state tax credit.

Please consult with a tax advisor to determine if your charitable donation or portion of your charitable donation is tax-deductible. 

STATE TAX RETURNS: As of 2019, Arizona filers can deduct 25% of their total charitable donations for the year on their state tax returns regardless of whether you take the standard deduction or itemize on your federal tax returns. 

QCO and QFCO AZ Tax Credits: 

Beginning in 2023, the maximum Arizona state tax credit donations for Qualified Charitable Organizations (QCO) and Qualified Foster Care Organizations (QFCO) will automatically be adjusted for inflation each year.  

2024: 

• The maximum allowable credit for contributions to QCOs for the 2024 tax year is $470 single, married filing separately, and heads of household filers, or $938 for married filing jointly.
• The maximum allowable credit for contributions to QFCOs for the 2024 tax year is $587 single, married filing separately, and heads of household filers, or $1,173 for married filing jointly.

Please Note: Arizona law allows QCO and QFCO donations made during 2024 or donations made from January 1, 2025 through April 15, 2025 to be claimed on the 2024 Arizona income tax return. 

2025: 

• The maximum allowable credit for contributions to QCOs for the 2025 tax year is $495 single, married filing separately, and heads of household filers, or $987 for married filing jointly.
• The maximum allowable credit for contributions to QFCOs for the 2025 tax year is $618 single, married filing separately, and heads of household filers, or $1,234 for married filing jointly.

Public School AZ Tax Credit: 

• The maximum allowable credit for contributions to Public School Tax Credit organizations is $200 for single, married filing separately, and heads of household filers, or $400 for married filing jointly. 

Please consult with a tax advisor to determine if your charitable donation or portion of your charitable donation is tax-deductible.

How do I know if my donation is tax-deductible (federal or state)?

FEDERAL TAX RETURNS: All Arizona Gives participating organizations are 501c3 organizations. Donations can be itemized. A donation cannot be reported/claimed as both a federal deduction and an Arizona state tax credit.

Please consult with a tax advisor to determine if your charitable donation or portion of your charitable donation is tax-deductible. 

STATE TAX RETURNS: As of 2019, Arizona filers can deduct 25% of their total charitable donations for the year on their state tax returns regardless of whether you take the standard deduction or itemize on your federal tax returns. 

QCO and QFCO AZ Tax Credits: 

Beginning in 2023, the maximum Arizona state tax credit donations for Qualified Charitable Organizations (QCO) and Qualified Foster Care Organizations (QFCO) will automatically be adjusted for inflation each year.  

2024: 

• The maximum allowable credit for contributions to QCOs for the 2024 tax year is $470 single, married filing separately, and heads of household filers, or $938 for married filing jointly.
• The maximum allowable credit for contributions to QFCOs for the 2024 tax year is $587 single, married filing separately, and heads of household filers, or $1,173 for married filing jointly.

Please Note: Arizona law allows QCO and QFCO donations made during 2024 or donations made from January 1, 2025 through April 15, 2025 to be claimed on the 2024 Arizona income tax return. 

2025: 

• The maximum allowable credit for contributions to QCOs for the 2025 tax year is $495 single, married filing separately, and heads of household filers, or $987 for married filing jointly.
• The maximum allowable credit for contributions to QFCOs for the 2025 tax year is $618 single, married filing separately, and heads of household filers, or $1,234 for married filing jointly.

Public School AZ Tax Credit: 

• The maximum allowable credit for contributions to Public School Tax Credit organizations is $200 for single, married filing separately, and heads of household filers, or $400 for married filing jointly. 

Please consult with a tax advisor to determine if your charitable donation or portion of your charitable donation is tax-deductible.

How do I know if my donation qualified as an Arizona state tax credit?

Arizona has several different types of state tax credits with varying maximum credit limits for each type of tax credit and AZ state tax filer. 

STATE TAX RETURNS: AZGives.org identifies for you the organizations to which contributions qualify for the Arizona State tax credit (QCO, QFCO, and Public Schools only). Consult your tax advisor for the impact on your returns. You can also find additional Arizona Tax Credit information here.* 

NOTE: Arizona Gives cannot accept donations for scholarships for Private or Certified School Tuition Organizations (STOs) due to a state law prohibiting donations from being accepted by a third party and passed along using Arizona Gives. Therefore Arizona Gives cannot provide receipts to use for STO tax credit purposes. 

*Donation receipts (received via email) have been approved by the Arizona Department of Revenue and can be used for Arizona state tax credit purposes and include QCO codes, QFCO codes, and public school district information.

How do I know if my donation qualified as an Arizona state tax credit?

Arizona has several different types of state tax credits with varying maximum credit limits for each type of tax credit and AZ state tax filer. 

STATE TAX RETURNS: AZGives.org identifies for you the organizations to which contributions qualify for the Arizona State tax credit (QCO, QFCO, and Public Schools only). Consult your tax advisor for the impact on your returns. You can also find additional Arizona Tax Credit information here.* 

NOTE: Arizona Gives cannot accept donations for scholarships for Private or Certified School Tuition Organizations (STOs) due to a state law prohibiting donations from being accepted by a third party and passed along using Arizona Gives. Therefore Arizona Gives cannot provide receipts to use for STO tax credit purposes. 

*Donation receipts (received via email) have been approved by the Arizona Department of Revenue and can be used for Arizona state tax credit purposes and include QCO codes, QFCO codes, and public school district information.

Where can I find out more about Arizona state tax credits and annual limits?

A list of qualifying charities can be found on the Arizona Department of Revenue's website and is updated monthly. You can also find additional Arizona Tax Credit information here. 

Organizations that qualify for an Arizona Tax Credit (QCO, QFCO, and Public Schools only) will be marked as such on the AZGives.org website and on the organization's individual profile page. Donors can also filter by Arizona Tax Credits when searching for organizations to donate to.

Please consult with a tax advisor to determine if your charitable donation or portion of your charitable donation qualifies.

Where can I find out more about Arizona state tax credits and annual limits?

A list of qualifying charities can be found on the Arizona Department of Revenue's website and is updated monthly. You can also find additional Arizona Tax Credit information here. 

Organizations that qualify for an Arizona Tax Credit (QCO, QFCO, and Public Schools only) will be marked as such on the AZGives.org website and on the organization's individual profile page. Donors can also filter by Arizona Tax Credits when searching for organizations to donate to.

Please consult with a tax advisor to determine if your charitable donation or portion of your charitable donation qualifies.