Arizona is unique from many states because the taxpayer is able to direct where some of the taxes they pay will end up.
Charitable Tax Credits
There are two kinds of Charitable tax credits available. Arizona established certified charities to which taxpayers can make contributions, and then receive a tax credit up to a certain amount against their Arizona tax obligation, and a deduction from their federal return. One is regular charities that have been certified by the state, and the other type is Certified Foster Care Charities. Click here for a detailed brochure on both: Brochure on Charitable Tax Credit in Arizona
The first is the Charitable Tax Credit. Single taxpayers can receive a credit up to $421 for the year, and married couples can receive a credit up to $841 per year. For a list of eligible certified charities for 2023, click on 2023 Certified Charities.
The second is the Certified Foster Care Charities. Single taxpayers can receive a credit up to $526 for the year, and married couples can receive a credit up to $1,051 per year. For a list of 2021 Certified Foster Care Groups, click on 2023 Foster Care Groups
Education Tax Credits
There are also a couple of ways for the taxpayer to receive a tax credit for money paid towards education in Arizona. There is the School Tax Credit and contributions made to qualified school tuition organization for scholarships to private schools. Click here for more details: Brochure on School Tax Credits
Regarding the School Tax Credit, a taxpayer may receive a tax credit for contributions of fees for qualified activities or programs paid to public schools. The maximum amounts for which a taxpayer can receive a tax credit is $200 for singles and $400 for a married couple. You will need to provide information regarding the name of the school, the school district and the code number assigned to that school. You can get this information on this link: 2023 School Information.
For the qualified school tuition organization for scholarships to private schools program, a taxpayer may donate as an individual and receive the tax credit. The primary tax credit is up to $655 for singles and $1,308 for married couples. If you Additionally, if you have reached the maximum for the private schools programs, you can also contribute to a Certified School Tuition Organization in the amount of $652 for singles and $1,301 for married couples filing jointly.
Furthermore, an individual who is a shareholder of an S corporation may claim two separate credits for contributions made by the S corporation to a qualified school tuition organization when the S corporation qualifies for a corporate credit and makes an election to pass that credit through to its individual shareholders.
For a list of the 2023 Qualified School Tuition Organizations, click here 2023 School Tuition Organizations Approved for Arizona Tax Credit The dates will show the beginning date that the organization was certified, and if that certification has ended, the ending date.841
