2017 Arizona Tax Credits Summary

 December 20, 2017

Written by Mike Hirte, Partner

The Arizona legislature has retained and expanded some of the incentives for charitable giving for 2017. These credits are for individuals only, and the dollar limits differ depending on your marital status. Your payments will reduce your Arizona income tax liability dollar-for-dollar.  Depending on your individual situation, you may also be able to deduct the contributions on your federal income tax return. Receipts should be retained for your records and provided to your tax preparer so they can account for the credits on your 2017 income tax returns.

Private School Tuition Organizations

  • Maximum credit is $2,177 for married couples filing jointly and $1,089 for all other taxpayers.
  • The credit is available for a contribution to an organization that provides scholarships or grants to a qualified elementary or high school. A list of organizations qualified to receive these donations can be found at 2017 School Tuition Organizations Qualifying for the Arizona Tax Credit.
  • Your contribution can be made to benefit a non-relative or a relative if they are not your dependent, but cannot be designated for the direct benefit of your dependent.
  • The maximum credit amount above includes the Private Learning Uplifting Students (PLUS) tax credit. To be eligible for the PLUS tax credit, the Arizona taxpayer must first donate the maximum for the original School Tuition Organization Tax Credit ($1,092 for Married Couples Filing Jointly and $546 for all other taxpayers.) The maximum PLUS credit amount that may be taken for tax year 2017 is $1,085 for married couples filing jointly and $543 for all other taxpayers.
  • Credit-eligible payments can be made as late as April 15, 2018 and still be claimed as a credit on your 2017 Arizona income tax return. For federal tax purposes, these donations are deductible in the year paid.

Public Schools

  • Maximum credit is $400 for married couples filing jointly and $200 for all other taxpayers.
  • The credit is available for payment of fees to an Arizona public school or charter school for support of extracurricular activities (activities include field trips, sporting activities, and fine art) and certain other fees.
  • The fee can be (but is not required to be) paid for the benefit of a designated child’s (including your own child) participation in a particular activity. Fees can also be paid to a central fund at the school to fund extracurricular activities for all students.
  • Credit-eligible payments can be made as late as April 15, 2018 and still be claimed as a credit on your 2017 Arizona income tax return. For federal tax purposes, these payments may be deductible in the year paid if they are not for the benefit of a specific child.

Contributions to Qualify Charitable Organizations

(Formerly known as the “Working Poor Credit”)

  • Maximum credit is $800 for married couples filing jointly and $400 for all other taxpayers.
  • Check AZDOR Certified Charities 2017 for the most current list of Qualifying Charities (QCO).
  • Credit-eligible payments must be made on or before April 15, 2018 to be claimed as a credit on your 2017 Arizona income tax return. For federal tax purposes, these donations are deductible in the year paid.

Contributions to Foster Care Charitable Organizations

  • Maximum credit is $1,000 for married couples filing jointly and $500 for all other taxpayers.
  • Check AZDOR Certified Foster Care Charities 2017 for the most current list of Qualifying Foster Care Charities (QFCO).
  • Credit-eligible payments must be made on or before April 15, 2018 to be claimed as a credit on your 2017 Arizona income tax return. For federal tax purposes, these donations are deductible in the year paid.