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The Joys of an Arizona Tax Credit

Consider this: You’re a taxpayer in Arizona. Taxes which most citizens find burdensome but have to pay nonetheless. After all, it is the lifeblood of the nation. But wait, the Arizona Department of Reserve serves it to you like a carefully-aged tangy wine but with a smooth but a refreshingly delightful after taste. With parched lips, you come and taste it.

Yes, Arizona taxes are like that, and the smooth, delightful feeling comes with tax credits. You see, their tax credits come in either donation to Qualifying Charitable Organization and Qualifying Foster Care Charitable Organization, which have been assigned their respective five (5) digit code numbers. These are two of the recipients. Tax credits can be claimed using Form 321 and Form352 which are included with the Arizona income tax return. These “QCO Code” or “QFCO Code” are to be written in these forms to claim the tax credits for contributions to the aforementioned certified organizations. The Arizona Department of Reserve’s lists of qualifying charities include the code assigned per organization. So, you do not have to worry that you will miss the code for your choice’s charitable organization.

If you are an unmarried taxpayer, you can claim tax credit amounting to $400 likewise, if you are married but filing your tax return separately or head of your household. Married taxpayers, on the other hand, may claim up to $800 tax credit for as long as they file their return jointly.

Suppose you prefer donating in support of foster children and families. In that case, you can avail of $1000 tax credit if you are married and filing joint return, while $500 can be claimed by a single individual, head of the household and married taxpayers but filing separately.

Suppose you are a believer in education as the passport for the future. Why not choose to donate to Certified School Tuition Organizations or Private School Tuition Organizations? In which case, you can use Form 323 and Form 348, respectively. In the former, you can avail of a $590 tax credit if you are either married but filing separately, single or head of household, and $1,179 for married taxpayers and filing joint return.

Suppose you opt for filing Form 348 because you have donated to Private School Tuition Organizations. In that case, you can avail of tax credit amounting to $593 if single or head of household and if you are married but filing separately, and $1,186 for married and filing joint tax returns. 

If you feel satisfaction in providing financial assistance for members of the military in active-duty or veterans and their families, then donating to the Arizona Military Family Relief Fund by using Form 340 is just the act for you.

You will have that bubbly, refreshingly delightful feeling that your taxes have helped a lot of individuals in a variety of ways.