Tax Insights

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New rules for claiming AZ state tax credits

charity, contribution, credits, ArizonaArizona recently released some new rules for claiming credits for contributions that will take effect for the 2018 tax year. The affected forms are:

  • Arizona Form 322, Credit for Contributions Made or Fees Paid to Public Schools
  • Form 321, Credit for Contributions to Qualifying Charitable Organizations (QCO)
  • Form 352, Credit for Contributions to Qualifying Foster Care Charitable Organizations (QFCO)

Check out the full list of Arizona credits

Credit for Contributions Made or Fees Paid to Public Schools

In the past, when claiming this credit, you needed to provide the name, address and school district of the school receiving the contribution. Going forward, the Arizona Department of Revenue (ADOR) is requiring taxpayers to report the school’s County Code, Type Code, and District Code and Site Number (CTDS) in addition to the previously required information. The CTDS is a nine-digit number assigned by the Arizona Department of Education and can be found here. The ADOR website also provides a list of the site numbers.

Credits for Contributions to Qualifying Charitable Organizations and Qualifying Foster Care Organizations

The ADOR has assigned a five-digit code number to each QCO and QFCO to be reported when applying for the credit. There is a list of all the qualifying charities and their new assigned codes on their website.

Even though these are not major changes to the reporting rules for the selected Arizona credits, it is important to keep in mind for your 2018 filing when gathering your information.

KC Kolb