Did You Know?: Arizona Tax Credits—General Information

Linda Harvey

Arizona taxpayers can receive a tax credit on their Arizona income tax for certain cash donations to public schools and nonprofits in the state. A list of current organizations that are approved by the Arizona Department of Revenue to take these funds can be found on: azdor.gov/tax-credits/contributions-qcos-and-qfcos. A yearly maximum dollar amount is set, depending on the organization. Taxpayers can claim multiple tax credits in the same taxable year.

Credit-eligible donations from Jan. 1 through April 15 of a calendar year may be used as a tax credit on the prior year’s tax return. For example, qualifying donations made Jan. 1, 2023, to April 15, 2023, may be used as a tax credit on either your 2022 or 2023 Arizona income tax return. The credits may only be used to the extent they reduce a tax liability to zero. Any unused amounts may be carried forward for up to five consecutive taxable years.

The Department of Revenue makes it easy to make a donation. Simply go to their website and make a donation for last year’s taxes and/or the current year’s taxes. Go to aztaxcreditfunds.com.

A tax credit is a dollar-for-dollar tax credit off Arizona state taxes. It is a great way to reduce taxes.

Disclaimer: As with any tax information, be sure to do your own research and consult your tax professional for the best way to use this tax credit.