Arizona Tax Credit

It Won't Cost You A Penny To Support Individuals & Families In Need
Donate HereQCO Certificate

Give A Little And Recieve It ALL Back

Would you rather pay money to the state OR make an impact on an individuals life? As a certified QCO with the Arizona Department Of Revenue, you will receive a tax credit: a dollar-for-dollar reduction of the state income tax you owe – up to $400 for individuals and $800 for those filing jointly.

Learn more about QCOs HERE

Why Donate To Urban AZ And Get A Tax Credit?

Not only will it NOT cost you a single penny to donate to our organization, you will also help kick off our programs & campaigns that focus on:

  • Mental Health: Advocating the importance of mental health and help pay for therapy sessions for individuals experiencing mental health problems that can’t afford it.
  • Homeless: Help homeless individuals that are in need of food, basic need items, and much more!

As a donor, you get to choose which program you want your donation to benefit!

Tax Deduction Vs Tax Credit

A tax deduction reduces how much of your income is subject to taxes while a tax credit directly reduces the amount of taxes you owe, giving you a dollar-for-dollar reduction of your tax liability. Check out the chart below. Which would you rather have?

Scenarios: A: $10,000 Tax Deduction B: $10,000 Tax Credit
Adjusted Gross Income: $100,000 $100,000
Tax Deduction: ($10,000) n/a
Taxable Income: $90,000 $100,000
Tax Rate: 25% 25%
Taxed Owed: $22,500 $25,000
Tax Credit: n/a ($10,000)
Final Tax Bill: $22,500 $15,000

 

We’re assuming you would pick scenario B.

Real Time Examples

For our examples, we will be using the lowest taxable income bracket rate which is 2.59%

Example 1 Example 2 Example 3
Taxable Income: $3861 $7722.01 $15,444.02
State Tax Owed: $100 $200 $400
Donating $100 would reduce to your state tax liability to $0 Donating $200 would reduce to your state tax liability to $0 Donating $400 would reduce to your state tax liability to $0

 

How To Claim The Tax Credit

Step 1: Donate any amount (up to $400 if filing single or $800 filing jointly)

Step 2: You will recieve a donation reciept via email.

Step 3: When you are ready to file your taxes for the state of Arizona, use form 321 to claim the tax credit – You can download the form and instructions HERE

Step 4: On form 321, write down the amount you’ve donated and use our charity code 22476 (Part 1 Section B)

Please consult your tax advisor for specific questions related to your taxes.

FAQS

How does the tax credit work?

Here are some general guidelines for using the Arizona Charitable Tax Credit. Please consult your tax advisor for advice on your specific tax situation.

  • The gift must be made by an individual (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 $400,. For joint taxpayers, the maximum credit is $800.
Taxes are already withheld from my paycheck and i get a refund?

The purpose of withholding tax is to ensure that you comfortably pay whatever income ta you owe. Tax refunds offur when the amount you withheld is more than what you owed. If you typically get a refund and you owe taxes, your refund amount will be greater with the QCO tax credit.

How do I verify Urban AZ qualifies for the tax credit?

Visit the Arizona Department of Revenue website to see if an organization qualifies as a charity.

Does the Charitable Tax Credit also apply to my federal income tax returns?

The Charitable Tax Credit only applies on your Arizona State income tax. However, you may be able to claim a federal tax deduction for the amount donated.

I currently use the Public Education Tax Credit. Can I use the Charitable Tax Credit as well?

Yes, these two tax credits are independent. You can therefore take advantage of both the Public Education Tax Credit and the Charitable Tax Credit on the same tax return.

How does Urban AZ use Charitable Tax Credit dollars?

100% of your donation goes directly to supporting our programs, campaigns and overall helping build a stronger and healthier community!

Im a W-2 Employee And Have My Taxes Withheld. How Does That Affect Me?

It does NOT affect you. Your taxes are withheld from your paycheck so that your employer to pay the government in your name. If you are obligated to a tax refund, your refund will be greater with a tax credit

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