There are six common Arizona tax credits available to individuals for contributions made to certain organizations.
The first credit is for contributions or fees paid to a public school for the support of extracurricular activities or for character education programs. The limit is $200 for single and $400 for married taxpayers. Contributions for the 2017 tax year can be made through April 17, 2018.
The second and third credits are for contributions made to private school tuition organizations that provide scholarships to students who attend qualified schools. The limit for the second credit is $546 for single and $1,092 for married taxpayers for 2017. An individual can also claim an additional credit for making a donation to the same or a different private school tuition organization for the benefit of students that will be switching from public to private schools or starting kindergarten at a private school. The additional credit limit is $543 for single and $1,085 for married taxpayers for 2017. In total, the possible credit that can be claimed for a contribution to a private school tuition organization is $1,089 for a single taxpayer and $2,177 for married taxpayers for the year 2017. The list of School Tuition Organizations that are certified to receive donations for these two credits can be found here. Contributions for the 2017 tax year can be made through April 17, 2018.
The fourth credit is for contributions made to Qualifying Charitable Organizations and the limits on this credit increased in 2016. The limit is now $400 for single and $800 for married filing joint taxpayers. There is a list of self-certified charities that qualify for this credit, which can be found here. Contributions for the 2017 tax year can be made through April 17, 2018.
The fifth credit (that used to be linked to the charitable credit but no longer is linked as of 2016) is for contributions made to Qualifying Foster Care Charitable Organizations. The limit was also increased starting in 2016 and allows for a $500 credit for single and a $1,000 credit for married filing joint taxpayers who make contributions to qualifying foster care charitable organizations. Contributions for the 2017 tax year can be made through April 17, 2018.
The sixth credit is a $200/$400 (single / married filing joint) credit for contributions to the Arizona Military Relief Fund. The Arizona Department of Veterans’ Services administers the Military Family Relief Fund which helps service members and their families faced with unforeseen expenses when a loved one becomes a casualty of war. The deadline for contributions that qualify for this credit is December 31 each year, but donations are capped at one million dollars annually. Contributions that are received before the fund reaches one million dollars are prioritized on a first come, first served basis and the Department of Veterans’ Services will provide you with a receipt letting you know if the contribution qualifies.
If you have questions on how these credits may affect you, please contact us and we will be happy to assist.