Arizona Tax Credits - TY 2025
UPDATED TO 08/21/2024
Arizona individual taxpayers can redirect their state income tax to a variety of Arizona charities with Arizona tax credit contributions. Taxpayers do not need to itemize to claim the tax credits. A married couple filing a joint return in Arizona can qualify to redirect as much as $6,083 for 2025.
These credits both offset your Arizona tax liability and give you a Federal deduction. A taxpayer in the 32% tax bracket who contributes $1,000 would receive back the $1,000 from the state of Arizona, plus $320 from the IRS.
A taxpayer can contribute and take all the credits, subject to the amount of State tax for any particular year. The credits are non-refundable (if you contribute more than your Arizona tax liability for the year, you don’t get a refund of the difference). Unused amounts of credits carry forward for five years, except for the Military Family Relief Fund credit, which does not carry forward.
Contributions to QCOs, QFCOs, Schools, and STOs to offset the prior year’s Arizona tax liability must be made by the April filing deadline, even if the tax return is extended to October. Please note that for Federal Tax purposes, contributions made between January and April must be deducted for the calendar year in which they are made; they cannot be applied to the prior year.