Arizona Charitable Tax Credit

It’s as easy as 1-2-3

You have a terrific opportunity to support the Arouet Foundation, and in the process receive a dollar-for-dollar credit on your Arizona state income taxes! It is as easy as 1-2-3!

  1. Donate directly to the Arouet Foundation a gift of any amount (up to $400 if filing single or $800 if filing jointly) for your Arizona Charitable Tax Credit that will either reduce your tax liability or increase your refund. 

And the good news is, you do not have to itemize your deductions in order to receive the credit.

  1. The Arouet Foundation will mail you a receipt for your records.
  1. Complete AZ Form 321 and include it when you file your 2017 state taxes and claim your credit.  When filing out the form, use the receipt we send you to enter the amount of the donation and reference our Tax ID number 45-3456191.

To give by check, please mail to The Arouet Foundation, 4636 East University Avenue, Phoenix, AZ 85034.  Please be sure to write “tax credit” on your check memo line.  If you have any questions, please e-mail or call Alison Rapping, CEO at arapping@arouetfoundation.org or 480-771-6762 (office) or 602-525-8682 (cell).

FREQUENTLY ASKED QUESTIONS

The Charitable Tax Credit allows you to direct your tax dollars to The Arouet Foundation and receive that amount off your state income tax.

Q: What is the Qualifying Charitable Tax Credit?

A: The Arizona state income tax credit may be available to you when you donate to the Arouet Foundation. This was formerly known as the Working Poor Tax Credit.

Q: Can I Claim a Qualifying Charitable Organizations Tax Credit and a school tax credit?

A: Yes, the Qualifying Charitable Organizations Tax Credit is separate from, and does not compete with, the Public School Tax Credit. Therefore, donations to both your child’s school and to the Arouet Foundation may entitle you to multiple Arizona tax credits.

Q: Who can qualify for the Qualifying Charitable Organizations Tax Credit?

A: Individuals. This is a great opportunity for your friends and family who file Arizona State Income Tax to make a contribution to support the Arouet Foundation. People can go to the Arouet Foundation’s website – www.arouetfoundation.org – to make their 2017 contribution.  Donations from corporations are not eligible.

Q: Is there a limit to how much I can claim?

A: Yes.  The maximum Qualifying Organizations Tax Credit per year is: (i) $400 for taxpayers filing as “single,” “head of household,” or “married filing separate,” and (ii) $800 for taxpayers filing as “married filing joint.” Please consult your tax advisor for more information.

Q: What is the difference between a tax credit and a tax deduction?

A: A tax credit is a credit that a taxpayer receives either as a dollar-for-dollar reduction of the taxpayer’s income tax liability or, if no income tax is due, as an income tax refund. A taxdeduction is a deduction against a taxpayer’s taxable income, reducing income that would otherwise be taxable, with the result being that the taxpayer generally pays less tax. 

Q: Can I claim a tax credit and a tax deduction for my donation to the Arouet Foundation?

A:  To the extent you are eligible to do so, a donation to the Arouet Foundation may result in both (i) an Arizona state income tax credit, reported on your Federal income tax return, and (ii) a Federal income tax deduction, reported on your Federal income tax return. You cannot claim both a deduction and a credit for the same charitable donation on your Arizona tax return.

Q: What is the difference between a tax credit and a tax deduction?

A: A tax credit is significantly more beneficial than a tax deduction. A tax credit reduces your tax liability dollar-for-dollar and comes off at the bottom line. A tax deduction reduces the taxable income upon which your tax liability is calculated.

Q: Do I have to itemize deductions to take advantage of this tax credit?

A: No, taxpayers do not have to itemize deductions on their Arizona income tax return to claim the Qualifying Charitable Organizations Tax Credit.

Q:  What is the period for making eligible contributions?

A: Beginning with the 2016 tax year, credit eligible contributions made to a Qualifying Charitable Organization that are made on or before April 15th (the 15th day of the fourth month following the close of the taxable year) may be applied to either the current or the preceding taxable year and is considered to have been made on the last day of that taxable year. However, you want to make your full 2017 contribution to The Arouet Foundation prior to filing your 2017 Federal and State Taxes.

Q: Will the Arouet Foundation provide with documentation of my contribution?

A: Yes, we will provide you with a receipt of your contributions to the Arouet Foundation. This receipt can be used for your Arizona and IRS tax returns. Arouet’s Arizona Tax ID is 45-3456191.

Q: Where can I find out more information about Arizona Tax Credits?

A: We recommend you consult your tax advisor regarding questions about how you may be able to benefit from the Qualifying Charitable Organizations Tax Credit.  More information about the Arizona Tax Credit can be found here: https://www.azdor.gov/TaxCredits.aspx.

The Arouet Foundation does not offer legal or tax advice. Always check with a qualified and licensed professional regarding all matters related to tax or legal issues. Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS should assess related to this matter. Additional issues may exist that could affect the federal tax treatment of the transaction on the matter that is the subject of this advice and this advice does not provide a conclusion with respect to such issues.

Arouet Foundation
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