The Arizona Charitable Tax Credit
What is it?
The Charitable Tax Credit allows Arizona donors like you to get back your HandsOn Greater Phoenix charitable donation as a state tax refund or credit against what you owe in state taxes up to $400 ($800 if married filing jointly).
It's easy, and there's no need to itemize.
Questions? Read on for more details.
Learn how we put your donation dollars to work: View Mona's story below!
Meet Mona. She was living with her family in a local homeless shelter where she was able to participate in Read To Me, a HandsOn Greater Phoenix program that gives children access to books, learning and caring adult volunteers who encourage kids to set themselves up for success. This program created a spark in Mona that helped her believe anything is possible. She went on to become a dual major graduate at ASU in the Barrett Honors College and was recognized for her outstanding achievements by President Obama as National Youth of the Year.
Volunteers change lives every day!
Q. What is the Arizona Charitable Tax Credit?
A. Better than another deduction! The Arizona Charitable Tax Credit gives you a say in how a portion of your state tax dollars are spent allowing you to donate to a qualifying charitable organization like HandsOn Greater Phoenix. Your donation is credited against your state tax bill dollar for dollar up to $400 ($800 if married filing jointly). For example, if you owe $500 in state income taxes and you donate $400 to HandsOn Greater Phoenix, your $500 state tax bill will be reduced to $100.
Q. Do I qualify for this tax credit?
A. Yes! As long as you or your spouse pay any amount in Arizona state income taxes, then you qualify for this tax credit.
Q. What do I need to do?
A. All you need to do is make a donation to HandsOn Greater Phoenix. When you file your tax return, include Arizona Form 321 and total your nonrefundable individual tax credits on Form 301. We will send you a tax acknowledgement letter so it’s ready to file with your tax return.
Q. What is the maximum tax credit I can get?
A. Limits are $400 for individuals and $800 for married couples filing jointly. You can donate any amount to HandsOn Greater Phoenix but your charitable tax credit is limited to those amounts.
Q. Will this credit also apply to my federal income tax return?
A. No. The Arizona Charitable Tax Credit only applies to your Arizona state income tax. However, you might be able to claim a federal tax deduction for the amount donated. Consult your tax advisor.
Q. Can I take the Charitable Tax Credit if I take the Foster Care Tax Credit, Public School Tax Credit, and/or Private Tuition Organization Charitable Tax Credit?
A. Yes, they’re completely separate credits and you can take advantage of all four.
Q. Do I have to itemize deductions to claim this tax credit?
A. No. Ever since the 2013 tax year, you do not have to itemize deductions to claim a credit for charitable donations to a qualifying organization.
Q. Where can I get more information on the Charitable Tax Credit?
A. Please visit the Arizona Department of Revenue website, call the Taxpayer Assistance office at (602) 636-9199, or contact your personal tax advisor.