Tax Credit FAQ

What is the Qualifying Charitable Organizations Tax Credit Donation?

The Qualifying Charitable Organizations Tax Credit is a dollar for dollar charitable contribution you can give to qualifying 501(c)3 corporations (non-profits). You can receive a dollar for dollar tax credit, up to $200 filing single or $400 if filing a joint return, on your state income taxes while helping children – at no additional cost to you. You can either pay the State tax or you can help Child Crisis Arizona by making a donation.

What is the Qualifying Foster Care Charitable Organizations Tax Credit Donation?

The Foster Care Tax Credit works just like the Qualifying Charitable Organizations Tax Credit, and because Child Crisis Arizona qualifies for both, you can donate under both programs.

What is the difference between a tax credit and a tax deduction?

A tax credit is significantly more beneficial that a tax deduction. A tax credit reduces your tax due, dollar for dollar. A tax deduction reduces your taxable income, on which you tax liability is calculated.

Can I take the Qualifying Charitable Organizations Tax Credit if I take the School Tax Credit?

Yes. They are separate credits and you are allowed to take advantage of both.

How do I claim the credit?

You file Arizona Department of Revenue Form 321 and include it when you file your tax return. Form 321 is very simple to fill out.

Does the tax credit also apply to my federal income tax return?

No. The credit only applies to your Arizona State income tax return. However, as an added bonus, you may be able to claim the amount as a donation on your Federal Tax Return.

Please consult your tax advisor for additional information or clarification of your particular tax situation.