The Arizona Department of Revenue (ADOR) reminds taxpayers there is a new process for claiming credits for public schools, qualified charitable organizations (QCOs), and qualified foster care organizations (QFCOs) this tax filing season.
Public Schools
An individual may claim a nonrefundable tax credit for making contributions or paying fees directly to a public school in this state for support of extracurricular activities. The public school tax credit is claimed on Form 322.
For the purpose of claiming Arizona’s tax credit for contributions made or certain fees paid to a public school, ADOR now requires taxpayers report the school’s County Code, Type Code, District Code and Site Number (CTDS) on Form 322, which is included with the Arizona income tax return.
The CTDS is a nine (9) digit number that the Arizona Department of Education uses to identify Arizona public and charter schools. Taxpayers must enter the school code and not the district code. To find the CTDS number for a public school in Arizona, please visit the ADOR website at https://azdor.gov/tax-credits/public-school-tax-credit.
Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations
Arizona provides two separate tax credits for individuals who make contributions to charitable organizations: one for donations to Qualifying Charitable Organizations and second for donations to Qualifying Foster Care Charitable Organizations. Individuals making cash donations to these charities may claim the tax credits on their Arizona Personal Income Tax returns.
Effective in 2018, the Arizona Department of Revenue assigned a five (5) digit code to identify each QCO and QFCO for Arizona tax credit purposes on Form 321 and Form 352, which is included with the Arizona income tax return. Taxpayers must use the “QCO Code” or “QFCO Code” of certified organizations to claim the tax credits for contributions to QCOs or QFCOs.
The department maintains the lists of qualifying charities and assigned code for each organization. A taxpayer can only claim a tax credit for donations made to certified charities. Note: QFCOs are currently going through the re-certification process for 2019 contributions and not all 2018 certified QFCOs are certified for 2019.
To confirm certified qualifying charities and more information on QCO and QFCO tax credits, see https://azdor.gov/tax-credits/contributions-qcos-and-qfcos.