Advantage of AZ Qualifying Charitable Organization Tax credit
Support AZ Families
Thanks to the Arizona Charitable Tax Credit, you can donate up to $400 for individual and $800 for married couple and get it right back on your Arizona tax return. You can take both BizELife AZ Charitable Tax Credit in addition to your donation to school tax credit as well.
How is a credit different from a deduction?
A deduction reduces the amount of your income upon which the tax is determined. A credit reduces your tax liability as if you had already paid the tax.
How It Works
Step 1
Donate to BizELife to support entrepreneurial education
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Step 2
File your taxes and claim the credit by using AZDOR Form 321
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Step 3
Receive your tax credit!
(Up to $800)
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Tax Credit vs Tax Deduction Example
TAX Credit Example
- Joe and Mary earned $50,000 this year. They made an $800 gift to BizELife which is a Qualifying Charitable Organization for the tax credit. Their Arizona tax liability based on $50,000 in earnings is $1,680. They can take an $800 credit against their tax liability reducing it to $880.
$1680 Joe and Mary original AZ tax liability
−$800 AZ Charitable Tax Credit for BizELife donation
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$880 Joe and Mary’s final AZ tax liability
TAX Deduction Example
- Joe and Mary earned $50,000 this year. They made a $800 gift to other charities not qualified for AZ tax credit. Their taxable income is reduced by $800 and their liability is now based on $49,200. In 2017 that means their AZ tax liability is $1,255.
−$800 ABC charitable donation (not BizELife)
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$49,200 Joe and Mary reduced taxable income
$1,183 possible AZ tax liability (no other itemize deduction and 2 personal exemptions.
