To Claim the Credit You Must: Be an Arizona resident; Complete Arizona tax form 321 to file with your state tax return.
You may claim a tax credit for voluntary cash contributions you make during any taxable year to a Qualifying Charitable Organization. A Qualifying Charitable Organization is a charity that :
- is a 501(c)(3)
- that spends at least 50% of its budget on services to Arizona residents who either receive temporary assistance for needy families (TANF) benefits, are low income residents whose household income is less than 150% of the federal poverty level, or are chronically ill or physically disabled children and shows that the charity plans to continue spending at least 50% of its budget on services to those described above.
A charity has to apply for and meet all requirements of the law to be considered as a Qualifying Charitable Organization. Approved charities’ names are listed on the Department of Revenue’s website. CARE (Community Asset Resource Enterprise Partnership is approved and listed.
- Taxpayers filing as “single” and “head of household” status may claim a maximum credit of $400.
- Taxpayers that file jointly may claim a maximum credit of $800.
Do I have to itemize to claim a tax credit?
No. Starting with the 2013 tax year, you do not have to itemize deductions to claim a credit for contributions to a qualifying charitable organization.
Is this the same as the school tax credit?
No. The Charitable Tax Credit is separate, thus you can claim both credits as allowed by Arizona tax laws.
Do I claim my donation as a deduction or credit?
You may only claim a tax credit for your charitable contribution on your Arizona state return if the organization you donated to is considered a Qualifying Charitable Organization. Donations made to organizations not listed on the department’s published website are typically allowable as deductions. You cannot claim both a deduction and a credit for the same charitable contribution on your Arizona return.
How do I know the organization qualifies?
You can view the listing of Qualifying Charitable Organizations on the Department of Revenue’s website at any time. You can also ask the charitable organization to show you a copy of the Qualifying Charitable Organization certificate issued by the Department to the charitable organization. You can also contact the Department to see if the charitable organization is a Qualifying Charitable Organization.