Arizona Tax Credit
The tax credit program allows every person who files an income tax return with the State of Arizona the opportunity to receive a tax credit for contributing to qualifying charitable organizations (QCO) like Saguaro Foundation.
This income tax credit is available for contributions to Qualifying Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low-income residents of Arizona, or are individuals who have a chronic illness or physical disability. The tax credit is claimed on Form 321.
Who may claim these credits?
Anyone can participate, married or single, with or without children. Married couples filing jointly may contribute any amount up to $800. Single persons, heads of households, and married couples filing separately may all contribute up to $400. Each of these credits is in lieu of a deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes
Reference: ARS 43-1089.01 and Arizona Department of Revenue form 321.
How the Program Works
For every dollar you donate, the amount you owe on your Arizona state taxes will be that much less. If you do not owe taxes, the amount you donate may be carried forward for up to five years to offset future tax liabilities.
How do I claim the credit?
You can report the name of the qualifying charitable organization that you donated to as well as the dollar amount of your donation to the department of Revenue at the time of filing your taxes for the year.