Arizona State Tax Credits
Our office frequently receives inquiries about tax reduction strategies. One of the benefits of residing in Arizona is the opportunity to utilize various state tax credits. These credits can help achieve two key financial goals.
Firstly, you may qualify to make a charitable donation to a cause you support. By contributing to your chosen organization, you can make a meaningful impact on a cause you care about.
Secondly, depending on your filing status, you may receive a tax credit. It’s important to note that a tax credit differs from a tax deduction. A tax credit provides a dollar-for-dollar reduction in the amount of tax you owe, whereas a tax deduction reduces your taxable income.
The Arizona tax credit program allows you to distribute your charitable donations across multiple entities. The following list offers guidance on these credits:
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This individual income tax credit is available for donations to Qualifying Charitable Organizations that support Arizona residents in need. Eligible recipients include those receiving Temporary Assistance for Needy Families (TANF) benefits, low-income residents, and individuals with chronic illnesses or physical disabilities.
The maximum credit is $938 for married couples filing jointly and $470 for single filers, heads of household, and married individuals filing separately.
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This individual income tax credit is available for donations to Qualifying Foster Care Charitable Organizations that support Arizona residents in need. Eligible recipients include those receiving Temporary Assistance for Needy Families (TANF) benefits, low-income residents, individuals with chronic illnesses or physical disabilities, and at least 200 qualifying individuals in the foster care system.
The maximum credit is $1,173 for married couples filing jointly and $587 for single filers, heads of household, and married individuals filing separately.
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Arizona offers tax credits for donations to Certified School Tuition Organizations, which provide scholarships to students attending private schools in the state.
The contribution limits are $731 for single filers and $1,459 for married filers.
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Arizona offers tax credits for donations to Certified School Tuition Organizations, which provide scholarships to students attending private schools in the state.
The contribution limits are $731 for single filers and $1,459 for married filers.
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The Arizona Public School Tax Credit program enables Arizona taxpayers to donate to the public school of their choice and receive a dollar-for-dollar credit on their state taxes.
You can search for eligible schools here (click here).
The contribution limits are $200 for single filers and $400 for joint filers.
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By contributing to this valuable fund, you can support Arizona veterans in need while benefiting from a dollar-for-dollar tax credit on your Arizona state tax return. The fund has a $1 million cap for refundable tax credits, so it’s advisable to make your contribution early in the year. Once the $1 million limit is reached, any additional contributions must be returned. Therefore, donating early ensures you receive the tax credit. If you donate after the cap is reached, your contribution will be refunded.
The contribution limits are $200 for single filers and $400 for joint filers.
The Arizona Military Family Relief Fund (MFRF) was established to provide financial support to service members, veterans, and their families facing unexpected financial hardships due to military service. The MFRF program aims to help these individuals overcome financial obstacles, offering assistance for expenses such as rent, mortgage, utilities, car payments, and more.
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Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional.
