Curious about Arizona tax credits and whether you qualify? Contact us anytime for clarification or guidance on how to maximize one or more credits.
A tax credit reduces your tax liability dollar-for-dollar, while a tax deduction reduces your taxable income. For example, with $50,000 of taxable income and an Arizona tax liability of $1,500:
Knowing your expected Arizona tax liability is key to making informed decisions about tax credits. You can find your 2024 liability on Form 140, line 48. Contributions exceeding your total liability cannot maximize credits for that year, but Arizona allows you to carry forward unused credits for up to five years.
An individual may claim a nonrefundable tax credit for making cash contributions or certain fees paid to a public school or charter school in Arizona to support extracurricular activities or character education programs. The credit is equal to fees paid or cash contributions, at most $400 for married taxpayers filing jointly and $200 for all other filing statuses.
To claim this credit, you must receive a receipt from the school showing the school’s name, school district, taxpayer’s name, the amount paid or contributed, the date of the contribution, and a description of the supported activity.
You must make your 2025 tax credit contributions before filing your return by April 15, 2026.
Arizona law provides a credit for cash contributions made to qualifying charitable organizations. The maximum credit for contributions to these organizations is $938 for married taxpayers filing jointly and $470 for all other taxpayers.
You must make your 2025 tax credit contributions before filing your return by April 15, 2026.
Click here for a list of qualified Arizona charities.
Specific organizations supporting children in foster care are eligible for a tax credit for 2025 of $1,232 for married taxpayers filing jointly and $618 for all others.
You must make your 2025 tax credit contributions before filing your return by April 15, 2026.
A list of qualifying foster care organizations is available here.
To qualify for this credit, you must make cash or payroll withholding contributions to a tuition organization that provides scholarships or grants to qualified schools. For the 2025 tax year, the credit cannot exceed $2,910 for married filing joint taxpayers and $1,459 for all other taxpayers.
You must make your 2025 tax credit contributions before filing your return by April 15, 2026.
Find a list of qualified school tuition organizations here.
This fund provides financial assistance to families of currently deployed service members and certain veterans and their families. The statewide credits are limited to $1 million annually and must be made by December 31 and with prior approval.
Learn more about this credit here.