Turn your tax dollars into impact—with zero extra cost.
Arizona offers several dollar-for-dollar tax credits that allow you to support local organizations while reducing your state tax liability. These credits let you redirect taxes you already owe to causes you care about—without spending extra. It’s one of the rare opportunities in tax planning where generosity and strategy go hand in hand.
Important Note: Contributions claimed for Arizona tax credits generally do not qualify as charitable deductions on your federal return. If you itemize, you must reduce your federal deduction by the amount of any state tax benefit received.
It works just like W-2 withholding: you’re paying your Arizona taxes, but instead of sending that money to the state, you’re directing it straight to a local nonprofit, school, or relief fund.
Why Clients Love These Credits
• Dollar-for-dollar Arizona tax credit: Reduce your state liability without spending more
• No cost to you: You’re redirecting taxes you already owe
• Local impact: Every dollar stays in Arizona
• K&A handles the paperwork: Provide us your receipts and we store them, apply the credits, and ensure audit-ready documentation
Qualifying Charitable Organization (QCO) Tax Credit
This credit supports nonprofits that provide basic needs—such as food, shelter, medical care, and clothing—to low-income Arizona residents, including children with physical disabilities and individuals who are chronically ill. These organizations must be certified by the Arizona Department of Revenue and meet strict eligibility criteria.
Credit Limits:
- Single/Head of Household: Up to $495
- Married Filing Jointly: Up to $987
- List of QCOs: azdor.gov/tax-credits/contributions-qcos
K&A’s Recommendation: Paz de Cristo, which provides meals and clothing to the homeless community. Donate Here
Qualifying Foster Care Organization (QFCO) Tax Credit
This credit is similar to the QCO but specifically targets organizations that serve children in Arizona’s foster care system. These nonprofits provide placement services, mentoring, education support, and enrichment programs to help foster youth thrive.
Credit Limits:
- Single/Head of Household: Up to $618
- Married Filing Jointly: Up to $1,234
- List of QFCOs: azdor.gov/tax-credits/contributions-qfcos
K&A’s Recommendation: Arizonans for Children, which assists with placement and support services for foster youth. Donate Here
Public/Charter School Tax Credit
This credit supports extracurricular activities and character education programs at Arizona public and charter schools. Contributions can fund sports, music, field trips, clubs, and other fee-based programs. You do not need to have children enrolled to claim this credit—it’s open to all Arizona taxpayers.
Credit Limits:
- Single/Head of Household: Up to $200
- Married Filing Jointly: Up to $400
- List of eligible schools: azdor.gov/tax-credits/public-school-tax-credit
K&A’s Recommendation: Longview Elementary, serving a low-income community in the Osborn School District. Donate Here
Private School Tuition Credit (STO)
This credit supports School Tuition Organizations (STOs), which provide scholarships to students attending private K–12 schools in Arizona. STOs prioritize low-income families and students with disabilities. There are two parts to this credit—the original and the “switcher” credit—and taxpayers can contribute to both.
Credit Limits:
- Single/Head of Household: Up to $1,535
- Married Filing Jointly: Up to $3,062
- List of certified STOs for individual taxpayers: azdor.gov/tax-credits/private-school-tuition-tax-credit
- List of certified STOs for corporate taxpayers: azdor.gov/tax-credits/private-school-tuition-tax-credit
- Separate rules and limitations apply to corporate donations. Please consult K&A prior to making an donations through corporate partners, S corporation individual shareholders or exempt organizations.
K&A’s Recommendation: Pappas Kids Schoolhouse Foundation, supporting the education of homeless and at-risk youth. Donate Here
Arizona Military Family Relief Fund (MFRF)
This credit supports Arizona military families who are facing hardship due to injury or death of a service member. Administered by the Arizona Department of Veterans’ Services, the fund provides emergency financial assistance for housing, utilities, medical expenses, and more. The credit is refundable, but the fund has a $1 million annual cap—once reached, no further credits are allowed for the year.
Credit Limits:
- Single/Head of Household: Up to $200
- Married Filing Jointly: Up to $400
- The fund has a $1 million annual cap and often reaches it early in the year.
More info: dvs.az.gov/services/military-family-relief-fund
- The fund has a $1 million annual cap and often reaches it early in the year.
Contribution Deadline
To claim the first four credits (QCO, QFCO, Public/Charter School, and STO) on your 2025 Arizona tax return, contributions must be made by April 15, 2026.
Compliance Tip
Please send us your donation receipts as soon as you make the contribution. We’ll keep them securely in our files and ensure the credits are properly applied to your return. This helps avoid misplacement and ensures audit-ready documentation.
Call to Action
Don’t wait until April—especially for the Military Family Relief Fund, which often reaches its cap early in the year. If you’re unsure where to donate or how much you can claim, reach out for personalized guidance.
For questions or personalized support, contact your Account Manager or call (602) 776-6350.
