Q: What is the Arizona Charitable Tax Credit?

A: It’s a dollar for dollar credit for contributions to Qualified Charitable Organizations that reduces the amount of personal income tax owed the State of Arizona. The SCNM Sage Foundation has received approval as a Qualified Charitable Organization.

Q: What is the maximum tax credit I can receive?

A: Taxpayers filing as “single” and “head of household” status may claim a maximum credit of $400. Taxpayers that file as “married filing joint” may claim a maximum credit of $800.

Q: What is the deadline to give my Arizona Charitable Tax Credit gift? 

A: Beginning in tax year 2016, gifts given on or before April 15th 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. For example, a gift made on March 1, 2017 can be claimed as a tax credit on either 2016 or 2017 taxes. 

Q: How do I qualify to the Arizona Charitable Tax Credit?

A: Anyone who pays Arizona state income tax is eligible for the tax credit.

Q: Do I have to itemize my deductions to claim the credit for contributions to Qualifying Charitable Organizations?

A: No. Starting with the 2013 tax year, you do not have to itemize deductions to claim a credit for contributions to a qualifying charitable organization.

Q: Can I make a school tax credit donation and still claim the Charitable Tax Credit for a donation to the SCNM Sage Foundation as well?

A: Yes, each tax credit is authorized under different legislation and is independent. Therefore, you can take advantage of both the school tax credits and Charitable Tax Credits.

Q: Does the tax credit also apply to my federal income tax return?

A: No, the Arizona Charitable Tax Credit applies only on your Arizona State income tax.  However, you may be able to claim a federal tax deduction for the amount donated as SCNM Sage Foundation is a 501(c)(3) organization.

Q: Can a business make a contribution and claim the tax credit?

A: No, the tax credit is only for individual taxpayers.

Q: Can tax credit dollars be refunded?

A: Charitable Tax credits will increase your state refund. If you owe the state more than the amount withheld from your paycheck or the amount paid in estimated taxes, the credit will reduce the amount you pay and may result in a refund. If the amount of your tax credit exceeds your total tax liability to the state, the unused credits will be carried forward for up to five taxable years.