Tax Credit Donation
Peer Solutions is a qualifying charitable organization for Arizona’s tax credit program. Donate up to $421 as an individual or $841 as a couple to Peer Solutions and receive a dollar-for-dollar AZ Charitable Organization Tax Credit using QCO code #20833 on Form 321.
1. How does the tax credit work?
Some general guidelines for using the Arizona Charitable Tax Credit are as follows:
- An individual must make the gift (corporations, foundations, partnerships, etc., do not qualify).
- The gift must be made in cash (in-kind donations such as toys, books and services do not qualify).
- The maximum credit allowed for single taxpayers or heads of households is $421 and $841 for joint taxpayers.
2. How do I verify Peer Solutions qualifies for the tax credit?
Visit the Arizona Department of Revenue to see if an organization qualifies as a charity.
3. Can I still make use of the Arizona Charitable Tax Credit despite changes to federal tax law?
Yes. The tax credit remains in effect for your state tax return.
4. How do I file for the Charitable Tax Credit?
The tax credit is available regardless of whether you itemize your taxes. Use Arizona Form 321, “Credit for Contributions to Qualifying Charitable Organizations” to claim your tax credit.
5. What is the deadline for contributing this year?
The deadline to make a contribution applicable for the current tax year is April 15 unless that day falls on a weekend or holiday. The deadline for your donation to apply for the 2023 tax year is April 18.
6. I currently use the Public Education Tax Credit. Can I also use the Charitable Tax Credit?
Yes. These two tax credits are independent. You can claim both on the same tax return.
7. Can I make my charitable donation using payroll deductions?
Yes. Please consult with your employer to set up your payroll deduction. Your pay stub will act as proof of your donation.
8. Does the Charitable Tax Credit also apply to my federal income tax returns?
The tax credit only applies to your Arizona state income tax. However, you may be able to claim a federal tax deduction for the amount donated.
9. How do I document my contribution?
For cash and credit card donations, you will receive a receipt from the Phoenix Children’s Foundation documenting your contributions (minimum donation amount may apply). If you select a payroll deduction, you will receive a summary of your deductions the January following your payroll deduction period.
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