Arizona provides two separate nonrefundable tax credits for individuals who make contributions to charitable organizations: Qualifying Charitable Organizations (QCO) and Qualifying Foster Care Charitable Organizations (QFCO). Individuals making cash donations to these charities may claim donations as tax credits up to the allowable amount on their Arizona individual tax returns. Below is a summary of the 2018 Arizona tax credits.
- Credit for Contributions to Qualifying Charitable Organizations (QCOs) – The allowable credit for contributions remain the same as prior tax years. The credit is up to $400 for single, heads of household, and married filing separate filers and up to $800 for married filing joint filers.
- Credit for Contributions to Qualifying Foster Care Charitable Organizations (QFCO) – The allowable credit for contributions remains the same as prior tax years. The credit is up to $500 for single, heads of household, and married filing separate filers and up to $1,000 for married filing joint filers.
Arizona provides two separate nonrefundable tax credits to individuals for contributions made to a Certified School Tuition Organization that provides scholarships for students enrolled in Arizona private schools. Credits are available for donations made by individual taxpayers and corporate taxpayers.
- Credit for Contributions to Public Schools – The credit is up to $200 for single, heads of household, and married filing separate filers and up to $400 for married filing joint filers.
- Credit for Contributions to Private School Tuition Organizations – The credit is up to $1,107 for single, heads of household, and married filing separate filers and up to $2,213 for married filing joint filers.
Keep in mind that any Arizona tax credit contributions made after August 27, 2018, are no longer deductible for federal income tax purposes.
See the Arizona Department of Revenue’s website for a list of School Tuition Organizations.
For questions regarding these credits, check with your tax advisor.