The Arizona State Tax Credit system is a great benefit for Arizona taxpayers and the nonprofit community, but it can be a bit confusing. And now with the deadline being delayed until May 17th this year, you may have more questions than ever. But don’t let that scare you off from this awesome incentive. Here’s everything you need to know…
What is the Arizona State Tax Credit?
The Arizona State Tax allows you to redirect your tax dollars to qualified charities. When you make a donation to one of these charities, that amount is then subtracted from your tax liability.
The are four categories of qualified charities, each with their own gift limits:
| Qualified Charitable Organizations (formerly The Working Poor) | $400 for individuals or $800 for couples filing jointly |
| Foster Care Charitable Organizations | $500 for individual or $1,000 for couples filing jointly |
| Public Schools | $200 for individuals or $400 for couples filing jointly |
| Private Schools | $611 for individuals or $1,221 for couples filing jointly |
Which category does Big Brothers Big Sisters of Central Arizona fall under?
BBBSAZ is a Qualified Charitable Organization (QCO Code 20332), meaning you can make a gift to the organization and have it subtracted from your tax liability, up to $400 for individuals or $800 for couples filing jointly.
What if I already gave to an organization from a different category?
The tax credits are stackable, so you can give up to the fullo gift limit in each category.
What is the deadline to make a tax credit gift?
Normally, this deadline is April 15th. However for this year it has been extended to May 17, 2021. So you can still have time to make a gift this year and claim it on your 2020 taxes.
What do I need to do when I file my taxes?
If you are filing your taxes with a professional or online software, they will ask you if you made any donations that would qualify for the AZ State Tax credits. They may request our QCO code which is 20332.
If you are filing your own taxes,you will just need to complete Form 321.
How can I make my gift?
You can make your Tax Credit eligible gift to BBBSAZ at www.BBBSAZ.org/Give. You will immediately receive an email acknowledgment which can be used in filing your taxes.
Where does the money go?
Each year, BBBSAZ serves over 1,500 youth at no cost to these children or their families. Only with the support of our donors are we able to continue offering our programs to those youth in our community who can most benefit from having a mentor.
