Arizona provides many options for givers to be rewarded with tax credits. Tax credits reduce your Arizona taxes dollar for dollar, which is much more valuable than a charitable deduction, so listen up!
Credit for Contributions to Qualifying Charitable Organizations
This credit is available for contributions to Qualifying Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability. The tax credit is claimed on Form 321. The maximum credit allowed is $800 for married filing joint filers and $400 for single, heads of household, and married filing separate filers.
Credit for Contributions to Qualifying Foster Care Charitable Organizations
This credit is available for contributions to Qualifying Foster Care Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability, and provide immediate basic needs to at least 200 qualifying individuals in the foster care system. The tax credit is claimed on Form 352. The maximum credit allowed is $1,000 for married filing joint filers and $500 for single, heads of household, and married filing separate filers.
Public School Tax Credit
This nonrefundable credit is for contributes or fees paid directly to a public school in this state for support of eligible activities, programs or purposes as defined by statute. The public school tax credit is claimed by the individual taxpayer on Form 322. The maximum credit allowed is $400 for married filing joint filers and $200 for single, heads of household and married filing separate filers.
List of Schools and CTDS – County Code, Type Code, and District Code & Site Number
Credits for Contributions to Certified School Tuition Organizations
Arizona provides tax credits for contributions made to Certified School Tuition Organizations that issue scholarships to students enrolled in Arizona private schools. Two separate nonrefundable tax credits are available for contributions made to a Certified School Tuition Organization which provides scholarships for students enrolled in Arizona private schools.
Credit for Contributions to Private School Tuition Organizations (Original Individual Income Tax Credit)
This tax credit is claimed on Form 323. For tax year 2021, the maximum credit allowed is $611 for single, heads of household and married filing separate filers and $1,221 for married filing joint filers. For tax year 2022, the maximum credit allowed is $623 for single, heads of household and married filing separate filers and $1,245 for married filing joint filers.
Credit for Contributions to Certified School Tuition Organizations (Switcher Individual Income Tax Credit)
This tax credit is claimed on Form 348 and is available to individual taxpayers who donate the maximum amount allowed under the Credit for Contributions to Private School Tuition Organizations (Form 323) and make an additional donation to a Certified School Tuition Organization. For tax year 2021, the maximum credit allowed is $608 for single, heads of household and married filing separate filers and $1,214 for married filing joint filers. For tax year 2022, the maximum credit allowed is $620 for single, heads of household and married filing separate filers and $1,238 for married filing joint filers.
List of School Tuition Organizations Certified to Receive Donations for the Individual
The Arizona Military Family Relief Fund
The Arizona Military Family Relief Fund provides financial assistance to service members, Veterans and their families for unforeseen financial hardships caused by the service member’s military service. Assistance from the Arizona Military Family Relief Fund is determined by an Advisory Committee. The Committee is comprised of twelve members appointed by the Governor, as well as the Director of the Arizona Department of Veterans’ Services or their designee.
This tax credit is claimed on Form 340. For Tax year 2022, the maximum credit allowed is $200 for single, heads of household and married filing separate filers and $400 for married filing joint filers. More information, here.
2022 Year of Abundance
For 2022, I am working on an abundancy mindset. I wrote in my January 1st post that I would seek “abundance in health, wealth, love, gratitude, kindness, trust, faith, expectancy, spirituality, connectedness, inspiration, living, giving, openness, listening, learning, relationships, playfulness, and happiness.” Donating money fits right into the abundancy mindset, and it is a bonus to be rewarded with tax credits. While we had been giving all through 2021, as I worked on our returns last month, I saw that we could give much more and benefit from the tax credits. It was a lot of fun to pick out charitable recipients as a family. We donated to public schools, private schools, and various charitable organizations, with an emphasis on homelessness. Beyond charitable donations for which we received a tax credit, we donated to several organizations for which we only received deductions or in some cases received no tax benefit at all. Overall, we donated several thousand dollars for 2021 and we are on track for several thousand more for 2022!
Today we are donating to the Ukrainian Red Cross to contribute to relief efforts needed due to the war, there. Have a look at these photos, hug your loved ones, pray, and consider contributing what you can.
With Love,
P. Gustav Mueller, author of The Present