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What is a Tax Credit?

When you give to qualified Arizona charities—the Arizona government is allowing your donation to be counted as a tax credit. It’s basically the government’s way of letting you direct your tax dollars to the causes you believe in. So your tax credit is just that…a dollar-for-dollar credit that you can apply to your Arizona taxes—to reduce what you owe or increase your refund. You can give $500 (as a single filer) or $1,000 (as a joint filer) to Catholic Charities to get your Foster Care Charitable Giving tax credit.

How to Get Your Credit

Donate up to $500 (single) or $1,000 (joint) to Catholic Charities to help veterans, foster care children, the homeless or any of our programs by April 15, 2017. Fill out AZ Forms 301 and 352 for the Foster Care Charitable Giving tax credit and include in your 2016 Arizona State taxes. Get your $500 (single) or $1,000 (joint) tax credit for your 2016 Arizona taxes!

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How is the Foster Care Charitable Giving tax credit different from a deduction?

A tax credit is different than a deduction. A tax deduction lowers your taxable income, which then lowers your tax bracket and tax liability. A tax credit is a credit that covers dollar-for-dollar the taxes you owe to the state of Arizona.

 

Tax Credit Reduces What You Owe

Your Arizona taxes $610 Normally, you’d pay all of this to State of Arizona.

Foster Care Charitable

Giving Tax Credit -$500 But you gave to Catholic Charities, qualifying you for the Foster Care

Charitable Giving tax credit.

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What You Now Pay $110 And now you only have to pay this to the State of Arizona.

 

Tax Credit Increase Your Tax Refund

Your Arizona taxes $1,200 Your tax liability to State of Arizona.

Your Tax Withholdings $1,500 Look! You overpaid by $300.

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Your Tax Refund $300 You’ll get this refund and…

THEN…

You apply your tax +$500 You gave to Catholic Charities, qualifying you for the Foster Care

credit Charitable Giving tax credit.

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Your new tax refund $800 You get a bigger refund!

 

 

I want my tax credit!

Charity Tax Credit Donations

Frequently Asked Questions

  1. Who can take these tax credits?
    Any full-time or part-time Arizona resident who has an Arizona tax liability.

  2. Why would the government allow me to pay less in taxes?
    For the government and you, this is a win-win. When you donate to non-profits like Catholic Charities, you’re helping programs that benefit the whole community, like foster care, Head Start, the homeless and veterans.

  3. Do I have to contribute the maximum amounts to get my tax credit?
    You can contribute any amount up to the maximum amount and use that as your tax credit.

  4. Can I take more than one tax credit?
    Yes! If you have enough tax liability, you can take more than one credit to cover it. The Foster Care Charitable Giving Tax Credit can be stacked on the Charitable Giving Tax Credit, Private Education and Public School.

  5. What if I have more credits than I have taxes to pay?
    If you gave more in tax credit than you owe in Arizona taxes, then you can use them to pay future Arizona taxes up to five years.

  6. What do I need to take my tax credit on my taxes?
    Simply keep your year-end gift receipt from the charities that you gave to that qualify for the tax credit for you own personal tax records.

  7. Where do I get the tax forms needed for the Charitable Giving tax credit?
    You’ll need to use the AZ 140 and then your specific tax credit form that you can get at azdor.gov/TaxCredits.aspx. For Charitable Giving Foster Care, use AZ Form 301 and AZ Form 352.

  8. If I take the tax credit, can I also get a federal tax benefit, too?
    Yes! If the organization you are giving is a federal 501C3 charity, then you can use your donation as both an Arizona state tax credit and federal tax deduction.

  9. Who benefits from my tax credit gifts?
    When you give to Catholic Charities, the vulnerable in your community benefit from your gift. This means you’ll help veterans and others experiencing homelessness, children in foster care, domestically abused survivors and their children, sex-trafficked women and others.