There are a number of tax credits available in Arizona for the 2023 tax year. Some have new increased contributions limits. Please review your specific situation to make sure you are eligible.
Public/Charter School Credit: The contribution limit in 2023 is $200 Single, Head of Household and Married Filing Separate filers, and $400 for Married Filing Joint filers. Donate for extracurricular activities, character education programs, standardized testing fees and prep courses, career certification assessments or CPR training. Here is a link to a list of public schools: https://azdor.gov/sites/default/files/2023-03/PUBLICATION_ADESchoolListing.pdf
School Tuition Organization (STO): There are two credits available. The original one, called the Credit for Contributions to Private School Tuition Organizations, has contribution limits of $655 for Single, Unmarried Head of Household and Married Filing Separate filers, and $1,308 for Married Filing Joint filers. The tax credit for contributions to private school tuition organizations is claimed by the individual taxpayer on Form 323.
The second one, called the Credit for Contributions to Certified School Tuition Organizations – Individual, is only available to individuals that first donated the maximum amount allowed (see above: $655 Single / $1,308 MFJ) for a credit under the original income tax credit (see prior paragraph). This second credit has a maximum contribution limit of $652 Single / $1,301 MFJ, and the STO must be on the state certified list. The tax credit for contributions to certified school tuition organizations-individuals is claimed by the individual taxpayer on Form 348.
Here is a link to a list of school tuition organizations: https://azdor.gov/sites/default/files/2023-06/REPORTS_sto-i-list.pdf
Here is additional information on the Public/Charter School and School Tuition Organization Credits: https://azdor.gov/sites/default/files/2023-03/PUBLICATION_707.pdf
Qualifying Charitable Organization (QCO) Credit (formerly Working Poor Credit): This credit is available for contributions to Qualifying Charitable Organizations that provide assistance to residents of Arizona who either receive Temporary Assistance of Needy Families (TANF) benefits, are low-income residents of Arizona, or are chronically ill or have physically disabled children. The contribution limit for the QCO Credit in 2023 is $421 for Single or Head of Household filers and $841 for Married Filing Joint filers. The tax credit for contribution to the QCO Credit is claimed by the individual taxpayer on Form 321.
Check this link for eligible charities: https://azdor.gov/sites/default/files/2023-05/CREDITS_2023_qco.pdf
Qualifying Foster Care Charitable Organization: If you donate to a qualifying foster care charitable organization that meets the criteria for serving foster children, you can make a contribution up to the maximum credit of $526 for Single and $1,051 for Married Filing Joint filers. The tax credit for contribution to the Qualifying Foster Care Credit is claimed by the individual taxpayer on Form 352. Check this link for eligible charities:
https://azdor.gov/sites/default/files/2023-03/CREDITS_2023_qfco.pdf
Arizona Military Family Relief Fund: This credit helps families of deployed, injured or killed military personnel. ($200 Single / $400 MFJ). This credit caps at $1,000,000 annually, so that contribution should be made sooner in the calendar year than later. If your donation is not in the first $1mill annually, your donation will still be accepted as a donation but NOT a tax credit. There is an Estimate of Donations Received here so you can see if it is still available for a credit. Please be advised.
Visit: https://dvspay.az.gov/content/mfrf-tax-credit
To summarize:
For a Married Filing Joint return, the Public School Credit max is $400, the Private Tuition Organization Credits would be $2,609, the Qualifying Charitable Organization Credit is $841, the Qualifying Foster Care Credit is $1,051, and the AZ Military Relief Fund is $400, for a total of $5,301 of available tax credits.
For a Single filer, the Public School Credit max is $200, the Private Tuition Organization Credits would be $1,307, the Qualifying Charitable Organization Credit is $421, the Qualifying Foster Care Credit is $526, and the AZ Military Relief Fund is $200, for a total of $2,654 of available tax credits.
Online Account is an online system from the IRS that allows you to securely access your individual account information. Using this system will allow you to get accurate information and will help prevent delays or issues with tax return processing. Steps to set up an account are below.
Using Online Account you can view:
You can also:
To set up your Online Account use the link below and follow the updated instructions.
https://www.irs.gov/payments/your-online-account
Year Contribution* 50+ catch-up
2023 $22,500 $7,500
2024 $23,000 $7,500
* some restrictions apply; be sure to check with your plan administrator
Year Contribution** 50+ catch-up
2023 $6,500 $1,000
2024 $7,000 $1,000
** be sure to consider your adjusted-gross income limitations to determine if you are eligible to make a contribution or if your contribution is tax deductible
Year Contribution 50+ catch-up
2023 $15,500 $3,500
2024 $16,000 $3,500
Year Out-of-Pocket Contribution*
2023 Self $9,100 $3,850
Family $18,200 $7,750
2024 Self $7,500 $4,150
Family $15,000 $8,300
* 55+ additional $1,000
Year Business Charity Medical
2023 $.655 $.14 $.22
2024 $.670 $.14 $.21
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