Information on QCO's & QFCO's
Arizona provides two separate tax credits for individuals who make contributions to charitable organizations: one for donations to Qualifying Charitable Organizations (QCO), including Jacob’s Mission Community Center and the second for donations to Qualifying Foster Care Charitable Organizations (QFCO), including ASA Now.
Individuals making cash donations made to these charities may claim these nonrefundable individual income tax credits on their Arizona Personal Income Tax returns.
QCO's - The maximum allowable credit for contributions to QCOs is $800 for married filing jointly filers or $400 for single, married filing separately, and heads of household filers.
QFCO's - The maximum credit for contributions to QFCOs is $1,000 for married filing jointly or $500 for single, married filing separately, and heads of household filers.
These tax credits provide dollar-for-dollar tax benefits, allowing taxpayers to reduce their state tax liabilities for each dollar donated to charities, up to the maximum allowable limits.
*Credits that are not applied to tax obligations for the current tax year can be carried forward for a period of five consecutive years. You may carry over only that portion of the credit that you do not apply to tax. You cannot carry over any amount that you gave that was more than the maximum allowable limit as a credit in a given year.
*Claim one or more credits for your gift(s): Arizona Form 321 for gifts to QCOs, and/or Arizona Form 352 for gifts to QFCOs.
* For example if a single individual owes $2000 in taxes but donates $1000 to ASA Now, and $800 to Jacob’s Mission Community Center, their tax liability is reduced to $200.