How Arizona tax credits work.

Both. You make a gift, and Arizona gives you a dollar-for-dollar credit against your state tax liability for the same amount, up to the published maximum for each credit. A credit reduces what you owe, unlike a deduction, which reduces taxable income.

Yes. The Qualifying Foster Care Charitable Organization credit, the Qualifying Charitable Organization credit, and the School Tuition Organization credit are separate credits and can be claimed together. For an individual filer that is up to $1,882 in the same tax year.

These credits are non-refundable, so they cannot take your liability below zero. Unused amounts may be carried forward for up to five years. If you are unsure of your liability, give the amount you expect to owe and carry the rest forward.

Gifts made by April 15 may be claimed on either the prior tax year or the current one. You choose the year when you complete your plan, and the receipt states it.

You need the amount given, the date, and the organization code. We email all three with your receipt: Arizona QFCO Code #10013, Arizona QCO Code #22785, and the certified STO designation for the Azura Scholarship Fund.

No. Arizona credits are claimed on the state return regardless of whether you itemize on your federal return. Speak with your tax adviser about your own situation.