How do I know if I qualify?
You simply must itemize charitable contributions on your tax return. The credit is as follows for taxpayers filing as:
- married filing jointly: up to $800
- single or unmarried head of household: up to $400
- separate returns: up to $400
Is this the same as the School Tax Credit?
Although similar, this is not the same as the School Tax Credit, but falls under the Arizona Charitable Tax Credit. What this mean for you is that you are able to take advantage of the Public School, Private School Tuition and Charitable Tax Credit all in the same year.
Do I qualify for the credit if I do not owe taxes at year end?
The credit reduces your state tax liability independently from any tax that you may have withheld during the year. If you withheld an amount equal to or greater than your tax liability, the credit will increase your state tax refund.
Can I donate to more than one qualifying charity?
Yes, you are able to donate to more than one qualifying charitable organization that falls under each Tax Credit heading as long as the total amount does not exceed the limits mentioned above.
For more specific information on the Arizona Charitable Tax Credit, ARS 43-1088, consult your tax advisor or the Arizona Department of Revenue at (602) 255-3381. Or, go online to: Arizona Department of Revenue.