Arizona Charitable Tax Credit
If you pay income tax to the state of Arizona, you can get a dollar-for-dollar credit toward those taxes when you make a gift to Family Promise – an AZ Qualifying Charitable Organization! (up to $400/$800 for single/joint tax filers). In other words, you can redirect some of your income tax to Family Promise!
1) Give to Family Promise by phone, mail or online:Tax Credit Donation
2) Save your giving receipt
3) Complete Form 321 and file with your AZ tax return.
* YOU receive a tax refund for your gift if you paid taxes through payroll deduction or YOU receive credit toward your tax liability if you pay taxes when you file. You receive a refund or credit for the lesser of the Charitable Tax Credit limit OR your total AZ income tax.
How do I qualify for the Arizona Charitable Tax Credit?
Your gift to Family Promise must be made between January 1 of the tax return year and April 15 of the following year to qualify. Gifts of up to $400 for single filers and $800 for joint filers may qualify for the Charitable Tax Credit. The contribution must be reported on form 321 when you file Arizona State tax returns. You will also be required to use our Qualifying Charitable Organization (QCO) Code, 20453, when completing form 321.
Where can I obtain the 321 form for filing this credit?
What is the Qualifying Charitable Organization (QCO) Code for Family Promise?
Do I have to give $400 or $800 to qualify?
NO. Any gift to Family Promise (or other QCO) up to the limits of $400 (filing single) and $800 (filing jointly) can be utilized as an AZ tax credit. We will gladly accept more than the tax credit limits to help our families but amounts beyond the limits won’t qualify for the credit.
Can I take the Charitable Tax Credit if I take the Public School or other AZ Tax Credits?
YES! You may take advantage of any or all AZ tax credit categories – Charitable Org., Public School, Foster Care, Private School Tuition, Military Family Relief – up to the amount of your tax liability. Each type of credit has its own forms and maximums, and altogether the total of all contributions cannot exceed your tax liability to receive credit.
What does $400 or $800 provide through Family Promise?
Because of the generosity of our 50+ interfaith congregations, it only takes about $40 to shelter, feed, and transport a family for one full day and night. Your gift of $400 or $800 provides children and their parents with 10 to 20 nights of a safe place to sleep and food to keep them healthy on their way back to sustainable housing.
Do I have to itemize?
NO. You do not have to itemize deductions to claim the AZ tax credit.
Can I deduct my tax credit gift amount on my federal income tax returns if I itemize my charitable contributions?
NO. Effective 2018, any gift claimed as an AZ tax credit cannot also be claimed as a charitable deduction on one’s federal tax return. Amounts given above tax credit limits do qualify for the federal charitable deduction if you itemize.
What if I have a professional prepare my taxes?
Simply alert your preparer that you want to use the Arizona Charitable Tax Credit and provide the receipt for your gift and the Family Promise QCO Code: 20453. Most local preparers are aware of the AZ Tax Credit opportunity.
What is the difference between a tax credit and a tax deduction?
A tax credit is significantly more beneficial because it reduces your taxes, dollar-for-dollar by the amount given. A tax deduction reduces the taxable income upon which your tax liability is calculated.
Where can I get more information about the tax credit?
Visit the Arizona Department of Revenue website www.azdor.gov/tax-credits or call Taxpayer Assistance at 602.255.3381 or 800.352.4090.
~The information here is not intended as a legal tax advice. Family Promise always recommends consulting with a qualified tax professional in regard to tax matters.~