Taxpayers wanting to make donations to qualified charitable organizations and claim the Arizona tax credits on their 2021 Arizona individual income tax return have until the tax deadline of April 18, advises the Arizona Department of Revenue (ADOR).
Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations
In Arizona, there are two tax credits for individuals who make contributions to qualified charitable organizations: one for donations to Qualifying Charitable Organizations (QCO) and another for donations to Qualifying Foster Care Charitable Organizations (QFCO).
The maximum QCO credit allowed is $800 for married filing joint filers and $400 for single, heads of household, and married filing separate filers. The maximum QFCO credit allowed is $1,000 for married filing joint filers and $500 for single, heads of household, and married filing separate filers.
The Department provides the lists of qualified charities and corresponding assigned code for each organization. A taxpayer can only claim a tax credit for donations made to charities that have been qualified.
The 2021 list should be used for donations made during 2021. The 2022 list should be used for donations made during 2022. Donations made between January 1 and April 18, 2022 qualify to be claimed on either the 2021 or 2022 tax return. Taxpayers should use the appropriate forms for QCO’s (claimed on Form 321) and QFCO’s (claimed on Form 352) as well as the Form 301, the Nonrefundable Individual Tax Credits and Recapture. They should also verify they are using the qualified certified charity’s assigned code and the correct QCO/QFCO list in order to avoid processing delays.
During filing season, ADOR publishes a revised list at the end of each week. Be sure your software is up-to-date before filing to ensure you have the most updated information.
For more information on charitable tax credits in Arizona, what forms to use, and to confirm the list of qualified charities, see https://azdor.gov/tax-credits/
