Arizona Tax Credit
FAQ:
Q: What is the Arizona Charitable Tax Credit for Donations made to qualifying charitable organizations (QCOs)?
A: The Charitable Tax Credit is a dollar-for-dollar charitable contribution you can give to 501(c)(3) corporations (nonprofits). With Arizona Charitable Tax Credit for donations to QCOs, you can receive a dollar-for-dollar tax credit up to $421 for individuals and up to $841 for married couples filing jointly on your state income taxes.
Q: How do I qualify for and claim the Arizona Charitable Tax Credit for Donations made to QCOs?
A: If you make a cash contribution to PMD Alliance and you file an Arizona state tax return, you may qualify for the tax credit.
The tax credit is claimed on Form 321, which is available on the Arizona Department of Revenue’s website. PMD Alliance’s QCO code is 22103.
Q: Can I take the Arizona Charitable Tax Credit for Donations made to QCOs if I take the School Tax Credit?
A: Yes, they are separate credits and you are allowed to take advantage of both.
Q: What is the difference between a tax credit and a tax deduction?
A: A tax credit is significantly more beneficial than a tax deduction. A tax credit reduces your taxes, dollar-for-dollar. A tax deduction reduces the taxable income upon which your tax liability is calculated.
Q: Is PMD Alliance a “qualifying charitable organization?”
A: PMD Alliance is a tax exempt (501)(c)(3) organization.
Q: Can I make contributions to more than one QCO?
A: Yes, but the total Arizona Charitable Tax Credit for Donations made to Qualifying Organizations allowed is still $421 per individual or $841 for married couples filing jointly, regardless of the number of organizations you support.
Q: Where can I get more information about the tax credit?
A: You can get more information by visiting the Arizona Department of Revenue website or by calling Taxpayer Assistance at 602.255.3381 or 800.352.4090.