You’ve probably heard of the Arizona Charitable Tax Credit, but don’t know all the details about it. That’s okay! You’re not alone. Let’s break it down to its simplest steps.
The state of Arizona provides a variety of individual tax credits, including the AZ Charitable Tax Credit. This tax credit allows taxpayers to make charitable contributions and receive dollar-for-dollar reductions in your Arizona state tax liabilities.
The maximum allowable credit for contributions to Certified Charitable Organizations (QCOs) is $800 for married filing jointly filers or $400 for single, married filing separately, and heads of household filers. These tax credits provide dollar-for-dollar tax benefits, allowing taxpayers to reduce their state tax liabilities for each dollar donated to charities.
For example, if a single individual owes $2,000 in taxes but donates $400 to a qualifying charitable tax organization, their tax liability is reduced to $1,600.
Contrary to popular belief, Arizona taxpayers do not need to make their charitable contributions to QCOs before December 31 of a given year in order to be eligible for state tax credits for that tax year. The state of Arizona allows taxpayers to claim tax credits for gifts into April of the current year for the prior tax year. In 2023, the deadline for making a charitable contribution for the 2022 tax year under the AZ Charitable Tax Credit is April 17, 2023. The standard date is April 15, but that date falls on a weekend in 2023. Thus, the date extends to the following Monday.
The state of Arizona requires donations from different calendar years to be listed separately on Arizona Form 321. For the 2022 tax year, cash contributions that were made between January 1, 2022, and December 31, 2022, are required to be listed on Part 1, section A of Arizona Form 321. Cash contributions that were made between January 1, 2023, and April 17, 2023, are required to be listed on Part 1, section B of Arizona Form 321.
Verde Valley Sanctuary is a 501(c)(3) not-for-profit organization and qualifying charitable organization (QCO) for the Arizona Tax Credit. Federal Tax ID: #86-0741314. Qualifying Charitable Organization (QCO) Code #20041