Arizona State Tax Credit

You can make a difference in the lives of the children of the Child Crisis Center and earn Arizona tax credit by doing so. The Child Crisis Center- East Valley, Inc is a qualifying 501(C)(3) charity. Tax ID #86-0407090.

Below are some of the guidelines issued by the State of Arizona. For more in-depth information you may access the following web site – Arizona Department of Revenue - Charitable Tax Credit.

Please note: The Child Crisis Center is not a tax advisor. Please contact a qualified tax advisor for advice on your personal tax situation.


Credit for Contributions to a Qualifying Charity

What is the maximum amount of the credit?
For tax year 2005, taxpayers filing as single and unmarried head of household have a maximum credit amount of $200. Taxpayers that are filing as married filing joint have a maximum credit of $300. Taxpayers filing married filing separate have a maximum credit of $150.

For tax year 2006, taxpayers filing as single and unmarried head of household have a maximum credit amount of $200. Taxpayers that are filing as married filing joint have a maximum credit of $400. Taxpayers filing married filing separate have a maximum credit of $200.

How can a taxpayer know that a charity meets the criteria to be considered a qualifying charity?
The taxpayer should ask to see a copy of the certification letter that the charity is required to send the Department of Revenue. Also, the taxpayer may contact the department to see if an organization has filed a certification letter. See the section on Qualifying Charitable Organizations below for further information.

The taxpayer should also ask the following questions of the charity:

  1. Is the charity exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code? Or is the organization a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code Section 9901? Please note that community action agencies qualify only AFTER May 29, 1998.
  2. Does the charity spend at least fifty percent of its budget on services to Arizona residents who receive Temporary Assistance for Needy Families benefits or are considered low income households?
Can a taxpayer give to a qualifying charitable organization through an umbrella-type charitable organization?
Yes. A taxpayer must designate that the donation be directed to a member charitable organization or member group fund that would qualify on a stand-alone basis.
Must a taxpayer itemize deductions in order to qualify for the credit?
Yes. A taxpayer must itemize deductions and deduct charitable contributions on the Arizona state income tax return at least once in order to establish a baseline year and amount. The credit is then figured on the amounts over and above the baseline amount.
How does a taxpayer determine the baseline year and amount?
If a taxpayer itemized deductions and deducted charitable contributions in 1996, that is by law the baseline year. The baseline amount is the total dollar amount of charitable contributions deducted on Schedule A. This amount includes the total contributions deducted pursuant to Section 170 of the Internal Revenue Code including cash amounts, property, or mileage amounts. Therefore, if a taxpayer deducted a total of $500 in charitable contributions in 1996, that is the baseline amount.

If a taxpayer did not itemize deductions and deduct charitable contributions in 1996, then the baseline year is by law the first taxable year after 1996 that the taxpayer itemizes deductions and deducts charitable contributions.

How is the credit amount figured once a taxpayer has established a baseline?
Credit dollars are allowed on the amounts above the baseline dollar amount. For instance, if a taxpayer has a baseline amount of $500, the taxpayer must give $700 in total contributions that includes $200 to a qualifying charitable organization to receive a $200 tax credit. Likewise, a taxpayer could give $600 in total contributions, including $200 to a qualifying charitable organization, and receive a $100 tax credit.
Can a federal or state audit affect a taxpayer's baseline year and/or dollar amount?
Yes. The baseline year could be changed or established if a taxpayer's deductions are changed to or from itemized or to or from standard, for instance. The dollar amount could change depending on allowed or disallowed contributions. Remember that a taxpayer is required to notify the state of any federal audit changes within 90 days of the audit becoming final.
How does a taxpayer figure the baseline year and amount if filing status changes due to divorce, marriage, remarriage, death of a spouse, or change of residency?
Taxpayers must establish a new baseline year and amount following a filing status change listed above. This includes a married/joint filing where the spouses are different.