There are a number of tax credits available in Arizona for the 2020 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 2020 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.
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 $593 for Single, Unmarried Head of Household and Married Filing Separate filers, and $1,186 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: $593 Single / $1,186 MFJ) for a credit under the original income tax credit (see prior paragraph). This
second credit has a maximum contribution limit of $590 Single / $1,179 MFJ, and the STO must be on the state certified list. The tax credit for contributions to certified school tuition organizations for individuals is claimed by the individual taxpayer on Form 348.
Here is additional information on the Public/Charter School and School Tuition Organization Credits:
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 2020 is $400 for Single or Head of Household filers and $800 for Married Filing Joint filers. The tax credit for contribution to the QCO Credit is claimed by the individual tax payer on
Form 321. Check this link for eligible charities: https://azdor.gov/sites/default/files/media/CREDITS_2020_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 $500 for Single and $1,000 for Married Filing Joint filers. The tax credit for contribution to the Qualifying Foster Care Credit is claimed by the individual tax payer on Form 352. Check this link for eligible charities:
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. Visit: www.dvs.az.gov/mfrf
To summarize, for a Married Filing Joint return, the Public School Credit max is $400, the Private Tuition Organization Credits would be $2,365, the Qualifying Charitable Organization Credit is $800, the Qualifying Foster Care Credit is $1,000, and the AZ Military Relief Fund is $400, for a total of $4,965
of available tax credits.
For a Single filer, the Public School Credit max is $200, the Private Tuition Organization Credits would be $1,183, the Qualifying Charitable Organization Credit is $400, the Qualifying Foster Care Credit is $500, and the AZ Military Relief Fund is $200, for a total of $2,483 of available tax credits.
Year Contribution* 50+ catch-up
2020 $19,500 $6,500
2021 $19,500 $6,500
* some restrictions apply; be sure to check with your plan administrator
Year Contribution** 50+ catch-up
2020 $6,000 $1,000
2021 $6,000 $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
2020 $13,500 $3,000
2021 $13,500 $3,000
Year Business Charity Medical
2020 $.575 $.14 $.17
2021 $TBD $TBD $.17