Arizona Charitable Tax Credit

You can provide housing and services to homeless and at-risk veterans at no cost to you! Through the Arizona Charitable Tax Credit you can receive a credit on your Arizona tax liability up to $400 individually or $800 for couples filing jointly. The tax credit is claimed using Form 321. You can download it here.

U.S.VETS is a Qualified Charitable Organization (QCO), eligible for the Arizona Charitable Tax Credit. Any Arizona taxpayer is eligible to claim this credit and it does not conflict with other Arizona tax credits. If you itemize your federal taxes, your donation to U.S.VETS will also qualify as a federal deduction only in the year that you donate. For example, if you donate in 2017 to the tax credit, you will get a 2017 federal itemized deduction for the charitable donation. If you gave in 2018 (for 2017 prior to the filing deadline), then your itemized deduction will be taken in 2018 if you itemize for federal purposes.

Learn more below.

FAQS

It’s a dollar for dollar credit for contributions to Qualified Charitable Organizations that reduces the amount of personal income tax owed the State of Arizona. U.S.VETS has received approval as a Qualified Charitable Organization.

Beginning in tax year 2016, gifts given on or before April 15th may be applied to either the current or the preceding taxable year and is considered to have been made on the last day of that taxable year. For example, a gift made on March 1, 2017 can be claimed as a tax credit on either 2016 or 2017 taxes.

Anyone who pays Arizona state income tax is eligible for the tax credit.

No. Starting with the 2013 tax year, you do not have to itemize deductions to claim a credit for contributions to a qualifying charitable organization.

Taxpayers may only claim a tax credit for a charitable contribution on an Arizona state return if the organization donated to is an approved Qualifying Charitable Organization. The Arizona Department of Revenue has a complete listing of Qualifying Charitable Organizations here. Donations made to organizations not listed on the website are typically allowable as deductions. Taxpayers, however, cannot claim both a deduction and a credit for the same charitable contribution on an Arizona return.

Any charitable contribution that is included in itemized deductions on your federal return must be removed from your Arizona itemized deductions if the contributions were claimed as an Arizona credit. Donations made to organizations not listed on the department’s published website are typically allowable as deductions. You cannot claim both a deduction and a credit for the same charitable contribution on your Arizona return.

No, the tax credit is only for individual taxpayers.

Charitable Tax credits will increase your state refund. If you owe the state more than the amount withheld from your paycheck or the amount paid in estimated taxes, the credit will reduce the amount you pay and may result in a refund. If the amount of your tax credit exceeds your total tax liability to the state, the unused credits will be carried forward for up to five taxable years. The State will “refund” you what you paid in through withholding or estimated taxes if you send in your donation.  Note: it’s not really an overpayment of taxes (a “refund”), but a “redirect”. You can carry forward unused credits (over the amount you owe) for 5 years.