Make a Massive Impact This Holiday Season

How-to take Advantage of Arizona’s Dollar-for-Dollar Tax Credit for
Qualifying Charitable Organizations

(By Ben Riehle, CEO/Founder of the Apex Real Estate Network)

What if this holiday season you could donate $2,300-$4,700 to amazing charities throughout Arizona without any direct cost to you? You can make a major impact on your local community, positively affect the lives of others and not touch your piggy bank. As with most things you read on the internet, this sounds too good to be true… bear with me for just a few more lines and let me explain.

The State of Arizona allows tax payers to direct where a portion of their State Tax Dollars end up through a dollar-for-dollar credit for Arizonans that owe State Tax.

What this means: If you owe $2,000 in taxes to the State of Arizona you can make donations to qualifying organizations and reduce your tax liability equal to the amount you donate up to $2,000. This is a dollar-for-dollar credit, which means for every dollar you donate, your State Tax bill will be reduced in an equal amount. Note: there are limits on the amount of donations you can make to each designated organization (shown below). Additionally, if you do not owe state tax you will not receive a refund. You are however able to carry to deduction forward.

You do not have to itemize your return! “Unlike federal charity donations, Arizonans can claim this credit even if they don’t itemize deductions on their state tax returns.”[1] Additionally, except for the Military Family Relief Fund credit, taxpayers are able to make the donations until April 15th of the preceding year and still receive credit on their current year tax return.

There are five categories that are eligible for the dollar-for-dollar credits:

  • Private School Tuition Organizations
  • Public School Tax Credit
  • Qualifying Charitable Organizations
  • Foster Care Charitable Organizations
  • Military Family Relief Fund.

Each category has a maximum credit amount based on whether the tax filer is filing individual or filing a joint return. Tax payers can take advantage of the maximum credit in any or all categories (as long as they have State Tax Liabilities) and donate up to the maximum amount listed below.

Designated Organizations and Maximum Credit Amounts

Tax Credit Name Due Date Individual Filer Cap Joint Filer Cap Organization List
Private School Tuition Organization 4/15/2019  $         1,089  $       2,177 School Tuition Organizations
Public School Tax Credit 4/15/2019  $            200  $          400 Public School List
Qualifying Charitable Organization 4/15/2019  $            400  $          800 Qualifying Charitable Organizations
Foster Care Charitable Organization 4/15/2019  $            500  $       1,000 Foster Care Organizations
Military Family Relief Fund 12/31/2018  $            200  $          400 Military Family Relief Fund


Steps to Take 

  1. Calculate the amount of tax you owe to the State of Arizona (Speak to your tax preparer).
  2. Confirm with your tax professional that you are able to take advantage of the available credits.
  3. Review the list of qualified organizations listed above and find organizations you would like to contribute to.
  4. If yes, make the donations and follow the steps outlined on this site: Link[2]
    1. Donate up to the maximum of the amount outlined above and the amount you owe in state taxes to receive the full dollar-for-dollar credit.
  5. Print and keep records of the donations made to provide to your tax preparer.

Your tax professional can answer additional questions about tax credits and the forms you need to file with your tax return to get the credit.

I hope this article as brings more awareness to this amazing opportunity. Arizonans can have a massive impact on the local organizations that provide tremendous value and services to our communities.

Benjamin A. Riehle




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