Arizona Tax Credits – What are they?

May 21, 2015 By Evan Nielsen In Taxation No Comment Tags : , ,

Arizona has several tax credits available to its citizens. Many Arizonans could reduce their state tax liability dollar for dollar if they took advantage of the credit opportunities. The list below shows each of these and how they work as of May, 2015.

  1. Fees Paid or Contributions made to a Public School – $200 maximum for filing Head of Household (HH) or Single and $400 for Married Filing Jointly (MFJ) & Married Filing Separate (MFS). Report this on AZ Form 322. Information regarding the credit can be found at http://www.azdor.gov/TaxCredits/SchoolTaxCreditsforIndividuals.aspx#public List of Supported Schools: All Public & Charter Schools in Arizona that are NON-FEE Based. Credit must be paid in the year of taxation – meaning last fiscal donation date is 12/31 of the tax year.

 

  1. Contributions to a Private Tuition Based Organization – $1,042 maximum for filing Head of Household or Single and $2,106 maximum for Married Filing Jointly or Married Filing Single. File the credit on AZ Form 323 & 348 if needed. Information regarding credit is the same as above.

 

List of Supported Schools

 

Some Basic Rules: Only for grades K-12, The donation cannot be for the taxpayers own child/children; the Donation cannot be specific to a child and must be a general donation to the organization (which the organization is required to use towards tuition); The donation may be made up until April 15th following the end of the tax year in question. The donation can also be reported for your federal Charitable Contributions on your federal 2015 Schedule A.

 

  1. Contributions to Qualifying Charitable Organization – $200 maximum for filing Head of Household or Single and $400 for Married Filing Jointly & Married Filing Single. File for the credit on AZ Form 321.

 

More information regarding this credit

List of Qualifying Organizations

 

Credit must be paid in the year of taxation – meaning last fiscal donation date is 12/31 of the tax year.

 

  1. Contributions to Qualifying Foster Care Organizations – $200 maximum for filing Head of Household or Single and $400 for filing Married Filing Jointly or Married Filing Single. File for the credit on AZ Form 321. * All Qualifying Foster Care Organizations also qualify for the Charitable Organization Credit on the taxpayer’s federal return. Making the actual maximum $400 for Head of Household or Single filing and $800 for Married Filing Jointly & Married Filing Single.

 

Information regarding this credit is the same as the Charitable Organizations.

List of Qualifying Organizations

 

Credit must be paid in the year of taxation – meaning last fiscal donation date is 12/31 of the tax year.

Note also that if you do not use all of a credit in the year it was paid, the unused portion of the credit can be carried forward to be used in subsequent years, up to a maximum of 4 years into the future.

Special thanks to Sheryl S. Ganter for her contributions to this article.