The Arizona Department of Revenue (ADOR) reminds individuals they have until the tax deadline of April 18 to make donations to qualified charitable organizations and claim the Arizona tax credits on their 2022 Arizona individual income tax return.
Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations
Arizona has two separate tax credits for taxpayers who contribute to qualified charitable organizations: the first for donations to Qualifying Charitable Organizations (QCO) and the second for donations to Qualifying Foster Care Charitable Organizations (QFCO).
ADOR assigns a five (5) digit code to identify each QCO (claimed on Form 321) and QFCO (claimed on Form 352) for Arizona tax credit purposes. The credit form is included with the Arizona income tax return when filed. The Department publishes the revised lists of qualified charities and the corresponding assigned code for each organization at the end of each week. Be sure your software is up-to-date before filing, as a taxpayer can only claim a tax credit for donations made to charities that have been qualified.
The lists of the certified charities on azdor.gov displays the certified charities for that year.
- For donations made in 2022 – use the 2022 list.
- For donations made from January 1, 2023 to April 18, 2023 – use the 2023 list.
Arizona law allows QCO and QFCO donations made during 2022 or donations made from January 1, 2023 through April 18, 2023 to be claimed on the 2022 Arizona income tax return. Donations made between January 1, 2023 and April 18, 2023 qualify to be claimed on either the 2022 or 2023 tax return.
For tax year 2022, the maximum QCO credit allowed is $800 for married filing joint taxpayers and $400 for single, heads of household, and married filing separate taxpayers.
For tax year 2023, the maximum QCO credit allowed is $841 for married filing joint filers and $421 for single, heads of household, and married filing separate filers. If a taxpayer makes a QCO donation from January 1, 2023 through April 18, 2023 and wants to claim the higher 2023 maximum credit amount, the taxpayer will need to claim the credit on the 2023 Arizona return filed in 2024.
For tax year 2022, the maximum QFCO credit allowed is $1,000 for married filing joint taxpayers and $500 for single, heads of household, and married filing separate taxpayers.
For tax year 2023, the maximum QFCO credit allowed is $1,051 for married filing joint filers and $526 for single, heads of household, and married filing separate filers. If a taxpayer makes a QFCO donation from January 1, 2023 through April 18, 2023 and wants to claim the higher 2023 maximum credit amount, the taxpayer will need to claim the credit on the 2023 Arizona return filed in 2024.
Taxpayers should use the appropriate forms for QCO’s and QFCO’s as well as Form 301, Nonrefundable Individual Tax Credits and Recapture. Using an incorrect qualified certified charity’s assigned code or a charity not on the tax year’s QCO/QFCO list will result in rejection or processing delays.
