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In summary, the Arizona Charitable Tax Credit allows taxpayers to make charitable donations to the government and receive dollar-for-dollar reductions in their Arizona state tax liabilities. The Charitable Tax Credit comes in handy for Arizona state residents by doing their part as good citizens and getting something good in return.


Being a selfless contributor to the benefit of others is somewhat rewarding for some. And by contributing to help children in need, taxpayers in Arizona are getting the most out of the tax credits they can get from the state.  


When it comes to tax credits, other tax credits to charitable donations benefit children in Arizona. There are additional state tax credits that are offered by the state of Arizona. It allows taxpayers to contribute and specify how a portion of their tax contributions are allotted to a variety of charitable organizations and institutions in the state. These tax credits are also independent, so taxpayers can take advantage of multiple tax credits on the same income tax return they can get. Below is an example that most people need to know more about.


Credits For Contributions To Private and Certified School Tuition Organizations


Known as the Private School Tax Credit. The Credit for Contributions to Private School Organizations is a nonrefundable individual tax credit for charitable contributions to private school tuition organizations (STOs). It provides educational scholarships to private school students. A credit that is only available for individuals, so corporations, partnerships, and the like are not eligible. This contribution to private schools this year (2020) has a maximum allowable credit of $593 for single and $1,186 for married filing jointly filers. Single filers include heads of household filers and married but filing separately. Available only for cash donations, this credit is claimed on Arizona Form 323. Having a five year carryover period, taxpayers can claim these charitable contributions to Private School Tuition Organizations made through payroll withholding. The deadline for making a charitable contribution is the same as that of the Arizona Charitable Tax Credit. 


Credit Contributions to Certified School Tuition Organizations, or also known as the Switcher Individual Income Tax Credit. Available for individual taxpayers who claim the maximum allowable credit on Arizona Form 3223 and make additional charitable gifts to a Certified Tuition Organization (STO). For the Credit Contributions to Private School Tuition Organizations. As requirements for certified STOs defined by The instructions for Arizona Form 328, STO organizations must make “Scholarships or grants available to students of more than one qualified school.” Charter schools or programs run by charter schools are not qualified for this tax credit.


Its maximum allowable credit allowed is $1,179 for married filing jointly filers, or $590 for single, married filing separately, and heads of household filers. This tax credit is claimed on Arizona Form 348 and is only available for cash donations. Same as The Credits For Contributions To Private and Certified School Tuition Organizations, claimed the same way, has the same year for available credit carryover, and has the same deadline for making contributions. 


These are one of the contributions that can benefit children in the state of Arizona. Contributions may increase depending on the year. So make sure to be well informed and get the most out of your charitable donations, if you are a resident of Arizona.