Arizona Charitable Tax Credit
- You get your money back!
Tax credits reduce your taxes dollar-for-dollar as a credit (not a deduction).
- Maximum Amount Doubled
Couples filing jointly can now give any amount up to $800 maximum (individuals can give up to $400). Any donation amount up to the maximum can be used as a credit.
- Everyone Qualifies
No need to itemize! Everyone who files income taxes in Arizona can claim the credit, simply by making a contribution for Gesher Disability Resources.
(Tax ID: 86-0626273; QCO Code: 20748).
- Take multiple tax credits
In the same tax year, you may take advantage of multiple tax credits, including the Charitable Tax Credit, the Public School Tax Credit, Private School Tuition Tax Credit, and the Foster Care Credit. Each are separate credits.
TAX CREDIT FREQUENTLY ASKED QUESTIONS (FAQ)
What is Arizona Qualified Charity Tax Credit?
The Arizona Qualified Charity Tax Credit has been created for individuals who submit Arizona income tax returns. The credit applies to cash donations made to qualified nonprofit organizations, like Gesher Disability Resources.
Does Gesher Disability Resources Qualify?
A tax credit may be claimed for cash contributions made to a Qualifying Charitable Organization (QCO). Gesher Disability Resources qualifies through our 501(c)(3) nonprofit supporting organization (tax id# 86-0626273). Since 2015, we’re proud to say that Gesher Disability Resources met all the requirements needed by Federal and Arizona law to be considered as a QCO. We are also listed on the Arizona Department of Revenue’s website at www.azdor.gov.
How Do I Claim the Tax Credit?
Gesher Disability Resources recommends that you verify your charitable donation options with your tax professional. The Arizona Qualified Charity Tax Credit is available only to individuals. You report the name of the Qualifying Charitable Organization (QCO) you donated to as well as the dollar amount of your donation to the Arizona Department of Revenue on Form 321.
QCO Code: Beginning in 2018, the State of Arizona assigned a code to all eligible Qualifying Charitable Organizations. “Donors will be required to use this code when taking the tax credit on their income tax returns.” (letter, State of Arizona Department of Revenue, 9.14.18)
Gesher’s QCO Code = 20748.
It’s simple to take advantage of the AZ Tax Credit:
- Filing as “single” and “head of household” status may claim a maximum credit of $400
- Filing as “married filing separate” may claim a maximum credit of $400
- Filing as “married filing joint” may claim a maximum credit of $800
This credit can reduce taxes for these tax payers more than a regular deduction for contributions to charitable non-profits because they may get a dollar-for-dollar reduction in taxes owed. Starting with the 2013 tax year, you don’t have to itemize deductions to claim a credit for contributions to a qualifying charitable organization. You cannot claim both a deduction and a credit for the same charitable contribution on your Arizona return.
What is the difference between tax credit and a charitable deduction?
A tax deduction helps determine how much taxes you owe to the state. A tax credit reduces the amount you owe to the state. By making a donation to a Qualifying Charitable Organization, you can reduce the amount you owe to the state or increase your refund, dollar-for-dollar. This allows you to donate to Gesher Disability Resources at no cost to you! Donations made to nonprofit organizations not listed on the department’s published website are typically allowable as charitable deductions.