Is this donation a dollar-for-dollar tax credit off my Arizona State taxes?
Yes. Up to the maximum yearly donations set by the state, this donation is a dollar-for-dollar tax credit off your Arizona State taxes.
What organizations can receive a Qualified Charitable Tax Credit Donation? Only organizations that have been approved by the State of Arizona to operate as a Qualified Charitable Organization. A list of current organizations that are approved to take these funds can be found on this website.
Can a taxpayer claim multiple tax credits in the same taxable year? Yes.
Can I recommend a specific child receive my donation? No.
What forms should an individual use to claim these credits? Arizona Form 321.
Must the credit for contributions be claimed in the year of donation? No. Credit eligible donations from January 1 through April 15 of a calendar year may be used as a tax credit on the prior year’s tax return. For example, qualifying donations made January 1, 2020 to April 15, 2020 may be used as a tax credit on either your 2019 or 2020 Arizona income tax return.
Can a taxpayer receive a refund of these credits? No. The credits may only be used to the extent they reduce a tax liability to zero. Any unused amounts may be carried forward for up to five consecutive taxable years.