Tax Insights

Your Guide to State, Local, Federal, Estate + International Taxation

Score a 2020 Arizona Tax Credit

Doing an Arizona tax credit donation is a great way to receive a dollar for dollar reduction on your Arizona state tax while also giving to charitable organizations you feel strongly about.

Generally, any donation claimed as an Arizona tax credit is not deductible on the federal return. However, there is an exception if your total tax deductions (state and local taxes, real estate taxes etc.) on Schedule A are below the $10,000 limit. If this is the case, you can take the qualifying Arizona tax credit as a tax deduction up to the $10,000 SALT limit.

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There are some changes to the Arizona tax credit amounts for 2020. Listed below are the credits available and their limits for the 2020 tax year. For most credits, you can donate up to April 15, 2021 and apply to your 2020 tax return.

Credit for Contributions to Private School Tuition Organizations

  • Single taxpayers: $593
  • Married filing joint: $1,186

Credit for Contributions to Certified School Tuition Organizations (Plus/Switcher Credit)

  • Single taxpayers: $590
  • Married filing joint: $1,179

Credit for Contributions Made or Fees Paid to Public Schools

  • Single taxpayers: $200
  • Married filing joint: $400

Credit for Contributions to a Qualified Foster Care Organization (QFCO)

  • Single taxpayers: $500
  • Married filing joint: $1,000

Credit for Contributions to a Qualifying Charitable Organization (QCO)

  • Single taxpayers: $400
  • Married filing joint: $800

Military Family Relief Fund Credit (limited to $1M in contributions)

  • Single taxpayers: $200
  • Married filing joint: $400

Visit the Arizona Department of Revenue website Arizona Tax Credits  and the website of AZ Dept of Veterans Services for more information on the credits (including qualifying organizations) or consult your Henry + Horne tax professional.

Ron Greenfield, CPA