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In summary, Arizona taxpayers have a lot of options when it comes to utilizing state tax credits to reduce their Arizona state tax liabilities. But there is a lot of information to absorb in order to utilize these credits, especially the Arizona Charitable Tax Credit. Here are some of the key facts to know, along with links to the associated chapters above:

• As a tax credit, the Arizona Charitable Tax Credit reduces an individual’s tax liability. This differs from tax deductions, which reduce taxable income (Chapter 1).
• The Arizona Charitable Tax Credit permits any credits for contributions to Qualified Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs) that are not applied against tax obligations for the most recent taxable year to be carried forward for a period of five consecutive years (Chapter 1).
• For single taxpayers, married filing separately filers or heads of household filers, the maximum allowable credit for contributions to QCOs is $400; for joint taxpayers, the maximum credit for QCO contributions is $800. For QFCO donations, the maximum allowable credits are $500 for single, married filing separately and head of household filers, or $1,000 for married filing jointly (Chapter 2).
• To qualify for the Arizona Charitable Tax Credit, donations must be made to state-certified QCOs or QFCOs (Chapter 3).
• The deadline for making a donation and claiming a tax credit under the AZ Charitable Tax Credit for 2020 has been changed from April 15, 2021 to May 17, 2021 (Chapter 4).
• In addition to the Arizona Charitable Tax Credit, the state of Arizona offers several additional tax credits; taxpayers can combine these credits to reduce their state tax liability (Chapter 5).
• Recent federal regulations have limited how taxpayers can utilize state tax credits (Chapter 6).