Basics

Here is some basic information on Charitable Tax Credits.

Official scoop

If you’d like to learn more about the Arizona Charitable Tax Credit from the official source, try these links to the website for the Arizona Department of Revenue:

Frequently asked questions and answers about the Arizona Charitable Tax Credit.

A list of nonprofit organizations (including Bridging AZ) qualified to receive Charitable Tax Credits for the 2017 calendar year.

A department publication regarding the Arizona Charitable Tax Credit (Publication 710).

AZ 321 formGood form

Whether or not you itemize deductions for Arizona state taxes, you’ll need Form 321 for the Charitable Tax Credit.  An updated form is usually available in early January for the previous year’s taxes.  Check the Department of Revenue website for forms for earlier years.

Maximums

If you file as a single taxpayer, the maximum Charitable Tax Credit you can claim in any year is $400.   If you file jointly, the maximum credit you can claim is $800.

 

children playingSchool  & foster care credits

Arizona’s tax credits play well together.

If you take advantage of Arizona’s tax credits for donations to public, charter or private schools, you can also take advantage of the credits for charities.  Also, there are now separate limits for donations to charities and donations to foster care organizations.  More information is on the Arizona Department of Revenue website at azdor.gov.

The total amount of the credits you can claim depends on your tax situation.

Consult your tax professional for the specifics.

Two deadlines

Once upon a time, you had to make your Arizona Charitable Tax Credit donation by Dec. 31 to take advantage of the tax credit for that year.

Because of a change in the law, donors now can make a donation through April 15* and count it when they file their Arizona State tax return for the previous calendar year.

For example, you can now make a donation to Bridging AZ on April 15, 2019, and take that donation as a credit on your Arizona taxes for the 2018 tax year.

However, your donation counts as a deduction on your federal taxes only in the year you made the donation.  For example, you must make the donation by Dec. 31, 2018, if you wish to deduct the donation from your 2018 federal taxes.

Check with your tax professional for additional guidance.

*April 15 is the normal deadline to file federal and state tax returns.  The state tax credit date usually follows this deadline.  It may be later in any given year, depending on federal holidays and other factors.