Arizona's Charitable Tax Credits

Does Arizona have a unique opportunity for you to effectively pay your Arizona income taxes when you make certain donations? YES! Your tax dollars can go further in helping those in need while reducing the taxing effects (yes, pun intended) on Arizona government programs.

Consider these other questions:

- Do you itemize your deductions but are capped at $10,000 for the SALT taxes?
- Do you take a standard deduction and don't benefit on your tax return significantly from your charitable contributions?
- Do you want to maximize the tax effects of your donations in Arizona?
- Are you already donating to some of these not-for-profit qualified organizations but may be missing claiming the tax credit?

Key and Concise Point About Arizona Charitable Tax Credits

There are five (5) different types of charitable donation credits to choose from, with limits depending on your filing status end of the year; Single, Head of Household (HOH), Married Filing Separate (MFS) or Married Filing Joint (MFJ).

TOTAL credits available for 2021:
$2,519 - Single/HOH/MFS | $5,035 - MFJ
Updated amount for 2022:
$2,543 - Single/HOH/MFS | $5,083 - MFJ

(1) Arizona Military Family Relief Fund Credit

Single/HOH/MFS $200 | MFJ $400

This credit must be made in the same tax year to claim it and is limited to the first $1,000,000 of contributions received. I recommend you contribute early in the year as this fills up fast!

Any of the following four credit types allow you to contribute by Friday, 04/18/2022 for the best effective use of either the 2021 or the 2022 tax year.

(2) Qualifying Charitable Organizations that provide assistance to Arizona residents who are low income, chronically ill, or have physically disabled children.

Single/HOH/MFS $400 | MFJ $800

(3) Qualifying Foster Care Charitable Organizations providing foster-care community services. We love our animals, but this is for human benefit only.

Single/HOH/MFS $500 | MFJ $1,000

(4) Arizona Public/Charter School Tax Credit to support extracurricular activities that require students to pay a fee in order to participate.

Single/HOH/MFS $200 | MFJ $400

See also Arizona Publication 707 – School Credits

(5) School Tuition Organization Tax Credit

Single/HOH/MFS $1,219 | MFJ $2,435 (2021)

2021: "Original" Credit - Form 323, up to $611 Single/HOH/MFS, $1,221 MFJ
2021: "Overflow" Credit - Form 348, up to $608 Single/HOH/MFS, $1,214 MFJ

Single/HOH/MFS $1,243 | MFJ $2,483 (2022)

2022: "Original" Credit - Form 323, up to $623 Single/HOH/MFS, $1,245 MFJ
2022: "Overflow" Credit - Form 348, up to $620 Single/HOH/MFS, $1,238 MFJ

This type is comprised of two levels: The Original and The Overflow. Curious as to why? Ask me!

Did you know there are much higher STO limits for certain businesses (min $5,000), if eligible? This is in addition to the personal contributions! Interested to learn more? Contact us!

Use a free and easy tracking tool for these credits at:

Talk with us to determine if taking advantage of this opportunity is right for you!