For 2024, Arizona tax credits continue to offer generous incentives for charitable contributions. This overview focuses specifically on credits available to individual taxpayers. The credit amounts vary based on your filing status. By making these contributions, you can support worthy organizations while receiving a dollar-for-dollar reduction in your Arizona income tax liability. The Arizona tax credits outlined below present a unique opportunity to strategically direct your tax dollars to your preferred schools and charitable organizations without incurring any personal cost. For the 2024 tax year, married couples filing jointly can claim combined state credits of up to $5,821, while other filing statuses can claim up to $2,916 for individual contributions. With the exception of the Arizona Military Family Relief Fund Credit, any unused credits remain available for utilization over the next five tax years. It's essential to maintain all receipts for your records and provide them to your tax preparer for accurate reporting on your Arizona tax return. The state requires detailed documentation of all contribution dates on their respective credit forms. Most contributions and fees paid by April 15, 2025 qualify for the 2024 tax year, though the Arizona Military Relief Fund and S Corporation Private School Tuition Credits must be paid by December 31, 2024. Following federal tax regulations proposed on August 23, 2018, contributions eligible for Arizona tax credits generally cannot be claimed as federal tax deductions. For personalized guidance regarding these credits or to understand their specific application to your 2024 tax situation, please don't hesitate to reach out to us. Qualifying Charitable Organization (QCO) – Form 321 For Arizona tax credits 2024, married couples filing jointly can claim up to $938 in credits, while all other filing statuses can claim up to $470 for cash donations to Qualifying Charitable Organizations (QCOs). These organizations include those supporting chronically ill or physically disabled children. A comprehensive list of approved QCOs is readily available for reference. Each QCO has been assigned a unique identification code. To expedite processing, it's highly recommended to retain and provide the receipt from your chosen QCO, as this contains the necessary code. Importantly, taxpayers can claim these credits regardless of whether they itemize deductions. The credit applies to contributions supporting low-income Arizona residents or individuals with chronic illnesses or physical disabilities. Many recognized charitable organizations serving these communities qualify for this credit. Qualifying Foster Care Charitable Organizations (QFCO) – Form 352 For contributions to QFCOs, married couples filing jointly can claim up to $1,173 in credits, while other filing statuses can claim up to $587. A detailed list of approved QFCOs is available for reference . Each QFCO has been assigned a unique identification code. As with QCOs, providing the receipt containing this code significantly streamlines the process. Note that contributions to QFCOs cannot be claimed simultaneously as QCO contributions on Form 321. Private School Tuition Organizations – Form 323 For contributions to School Tuition Organizations, married couples filing jointly can claim a credit of $1,459, while other taxpayers can claim $731. This credit supports scholarships and grants for eligible elementary and secondary schools. While you cannot earmark contributions for your dependent's benefit, you can designate funds for relatives or other students who aren't your dependents. A comprehensive list of qualified School Tuition Organizations for 2024 is available. PLUS "Switcher" Tax Credit Program – Form 348 The Private Learning Uplifting Students (PLUS) program offers additional arizona tax credits beyond the original credit. To qualify, taxpayers must first maximize their contribution to the original School Tuition Organization Tax Credit. For 2024, married couples filing jointly can claim up to $1,451, while other taxpayers can claim up to $728 through the PLUS "Switcher" credit. Public School – Form 322 The public school tax credit allows married couples filing jointly to claim up to $400, while other filers can claim up to $200. This credit applies to payments made to Arizona public or charter schools for extracurricular activities or character education programs. Qualifying expenses include field trips, sports activities, and arts programs. You can direct these fees toward your child's specific activities, provided they don't exceed actual costs. Alternatively, you can contribute to the school's central fund supporting extracurricular activities for all students. All contributions should be made directly to individual schools. A list of eligible public schools participating in this credit program is available. Contributions to the above made between January 1, 2025, and April 15, 2025, can be applied as Arizona tax credits on either your 2024 or 2025 Arizona state tax return.  Arizona Military Family Relief Fund – Form 340 The Military Family Relief Fund (MFRF) credit allows married couples filing jointly to claim up to $400, while other filing statuses can claim up to $200. This fund provides crucial financial support to service members, Veterans, and their families. To claim this credit, you must obtain a receipt from the Arizona Department of Veterans' Services confirming your contribution's eligibility. The MFRF has an annual donation cap of $1M. As of July 2024, the fund has received $347,100 in contributions. Historically, the fund reaches its maximum before year-end, so early contributions are encouraged. A list of qualifying organizations for this credit is available. S Corporation Private School Tuition Credits Passed Through to its Individual Shareholders. An S corporation eligible for the corporate private school tuition credit has the option to transfer these arizona tax credits to individual shareholders, provided the corporation makes a minimum contribution of $5,000 to a qualified school tuition organization. To facilitate this process, the corporation must secure a copy of the school tuition organization's preapproved application, include it with their tax filing, and distribute AZ Form 335-S and/or 341-S to their shareholders. Individual shareholders then proceed to claim these arizona tax credits 2024 using AZ Form 335-I and/or 341-I on their personal tax returns. A notable advantage is that these credits can be claimed alongside the two individual private school tuition credits without being subject to the same restrictions. For reference, a comprehensive list of qualified organizations accepting corporate contributions is readily available.