AZ Charitable Tax Credits Explained
Consider Donating To Gompers Today!
Are you looking to donate to your charity of choice? We are sure that you may have many questions about the process so we are here to provide a clearer guide to the Arizona Charitable Tax Credit through the Arizona Department of Revenue.
You’ve probably heard of the AZ Charitable Tax Credit, but maybe you don’t know much about it. How does it work? How much can I donate? How much can I give to make a difference? That’s okay, we’re here for you!
The state of Arizona provides a variety of individual tax credits. These tax credits allow Arizona taxpayers to make charitable contributions reducing your tax liability and receive dollar-for-dollar reductions in their Arizona state tax liabilities.
How Does the Arizona Charitable Tax Credit Work?
Fortunately, the process for making a charitable contribution and claiming the Arizona Charitable Tax Credit is relatively straightforward. There are four steps to document your donation and claim your tax credits.
- Donate to a qualified charitable organization (QCO or QFCO), such as a 501(c)(3) organization like Gompers
- Maintain a receipt of your gift from the charity, in order to provide a copy with your tax return
- Complete the relevant tax form to claim one or more credits for your gift(s): Arizona Form 321 for gifts to QCOs, and/or Arizona Form 352 for gifts to QFCOs
- Calculate your individual tax return (e.g. Arizona Form 140, 140NR, 140PY or 140X), subtracting your tax credits from your tax liability, in order to reduce your Arizona state tax balance. Include either Arizona Form 321 or Arizona Form 352, or both, with this return
Limits to the AZ Charitable Tax Credit
The maximum allowable credit for contributions to QCOs for single taxpayers, married (filing separately) filers or heads of households is $400; for joint taxpayers, the maximum credit is $800. The maximum credit for contributions to QFCOs for single taxpayers, married (filing separately) filers or heads of households is $500; for joint taxpayers, the maximum credit is $1,000.
Deadlines For Contributions
The state of Arizona allows taxpayers to claim tax credits for gifts through April of the current year for the prior tax year. In 2020, the deadline for making a charitable contribution for the 2019 tax year under the AZ Charitable Tax Credit is April 15, 2020.
Now its Your Turn!
Take time to learn more about the above and donate to your charity of choice today!