AZ Charitable Tax Credit

What is the tax credit?

• The AZ Charitable Tax Credit for Qualifying Charitable Organizations (formerly known as the working poor tax credit) is a dollar for dollar credit
  for donations made to qualifying organizations on your Arizona state taxes.
• As of 8/27/2018, a proposed IRS rule has changed the ability to deduct tax credit donations on your federal taxes. Read the IRS’ statement on the change
  and consult your tax adviser for further advice. https://home.treasury.gov/news/press-releases/sm467
• Consult your tax advisor/preparator for advice specific to your tax situation. The below, is a guide and does not serve as legal advice.

Why Does Andre house qualify?
Andre House is a Charitable Qualifying Organization in the state of Arizona. A QCO has to meet all of the following criteria:

• Is exempt from federal income taxes under Section 501(c)(3), or is a designated community action agency that receives community services block
  grant program monies pursuant to 42 United States Code Section 9901.
• Provides services that meet immediate basic needs.
• Serves Arizona residents who receive temporary assistance for needy families (TANF) benefits, are low income residents whose household income is less
  than 150 percent of the federal poverty level, or are chronically ill or physically disabled children.
• Spends at least 50% of its budget on qualified services to qualified Arizona residents.
• Affirms that it will continue spending at least 50% of its budget on qualified services to qualified Arizona residents.

Benefits of the AZ Charitable tax credit

• Donors get a dollar for dollar credit, up to $421 for single filers and up to $841 for those filing as a couple.
• It’s easy! Make your donations  before the 15th day of the fourth month following the close of the taxable year and file form 321 to claim the credit on your state taxes.

AZ Charitable Tax Credit FAQ

Can I claim my tax credit donation as a federal deduction?

• It depends. There’s a new IRS Rule  that does not allow you to deduct it from your federal taxes if you itemize your federal taxes. Everyone’s tax situation is different and this is not legal advice; consult your tax advisor for advice specific to your tax situation.

What do I have to do to claim the credit on my state taxes?

• File form 321; Andre House’s CQO # is 20467.

How do my donations qualify for the tax credit?

• Donations (check, cash, credit card, money order) qualify for the credit. Make your donation at one time or, be a year-round sustainer and give monthly.
  Donated goods and services do not count towards the tax credit.
  

Can I take the Foster Care, School and Charitable Organization tax credits?

• Yes. These are separate credits and you can take one or all. Note, that you must file separate forms for the other tax credits.

Do I have to give the max to claim the credit?

• NO, give any amount within the threshold and it will qualify. Any amount over and above the threshold ($421 for singles $841 for couples) may still qualify for a federal deduction, but the credit caps out at the given amounts.

Can I make contributions to more than one qualifying charitable organization?

• Yes, but the total Arizona Charitable Tax Credit for Donations made to Qualifying Organizations allowed is still $421 per individual or $841 for married couples filing jointly, regardless of the number of organizations you support.

Where can I get more information about the tax credit?

• You can get more information by visiting the Arizona Department of Revenue website
  or by calling Taxpayer Assistance at 602.255.3381 or 800.352.4090.

Make a tax credit donation: