Common Misconceptions About the Arizona Charitable Tax Credit

If you have not directed your tax funds to a charity, or done anything with them at all, then you may be unfamiliar with the details of the Arizona Charitable Tax Credit. The requirements have changed over the years, and there’s a lot of information to know. Naturally, there are misconceptions about the credit. If you have a tax deductible charity that you want to donate to, like Paz de Cristo, then you need to know the facts.

Misconception #1: You Can Direct Funds to Any Charity

If you have a charity in mind to direct funds to, you first need to be sure that they qualify. Not all charitable organizations in Arizona are eligible to receive your tax funds. Money must be directed to Qualifying Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs).

According to the Arizona Department of Revenue, QCOs offer immediate help to low-income Arizona families in need, as well as the children of those with chronic illnesses and/or physical disabilities. Paz de Cristo is a working poor charity that is certified as a QCO. Our volunteers work every single day of the year to give and receive food boxes, hand out food, and empower those who need it.

QFCOs do the same as QCOs, with an added stipulation. They have to direct at least half of their budgets to serve children in foster homes and welfare agencies.

Misconception #2: Contributions Must Be Made By Dec. 31st

Some people think that contributions to QCOs and QFCOs have to be made by the end of the calendar year to be eligible for state tax credits. This is untrue, however! Arizona authorizes contributions from taxpayers to be made up until April of the current year for the tax year prior. That means that in the year 2022, donations for the 2021 tax year must be made by April 15, 2022.

Misconception #3: QCOs and QFCOs Can Receive the Same Amount of Money

It is important to note, prior to making any contributions, that the sum of money that can be given to a QCO differs from the amount of money that can be given to a QFCO. According to, the maximum credit permitted for donations for Qualifying Charitable Organizations for singles, married and filing separately taxpayers, or heads of households is $400. Joint taxpayers may direct up to double that.

When it comes to QFCOs, those who are filing as a single, those who are married and filing separately, and heads of households can direct up to $500. Again, joint taxpayers may direct up to double that.

If you don’t have the time to take advantage of community service opportunities or the resources to put together a food box, consider taking the easy step to use your tax dollars to make a difference. We at Paz de Cristo would be happy to help you do so, and we appreciate any funds directed our way!

Your Guide to Using Arizona’s Charitable Tax Credits

Many people dread tax time. The reminder of finances and necessary payments can seem exhausting. In order to make this time of year a bit less daunting, consider taking advantage of Arizona’s Charitable Tax Credits. Giving back to your community can make doing your taxes feel less like a burden. Here’s some of the basic information you need to know before moving forward.

Firstly, What Is It?

The Arizona Charitable Tax Credit is what is known as a nonrefundable income tax credit. It presents itself as a two-fold deal, offering credits for Qualifying Foster Care Charitable Organization (QFCOs), as well as Qualifying Charitable Organizations (QCOs). According to, the tax credit for giving to Qualifying Charitable Organizations dates back to 1998. Back then, it was referred to as the Working Poor Tax Credit.

When it comes to QCOs, an individual may match their tax credit dollar-for-dollar up to $400. Those married filing jointly may match their tax credit dollar-for-dollar up to $800. When it comes to QFCOs, the credit is set at a slightly higher maximum. Individuals may donate up to $500 and those married filing jointly can donate up to $1,000. You aren’t limited to either a QCO or a QFCO!

What Charities Can I Donate To?

QCOs offer essential needs to those living in Arizona who get temporary assistance for needy families (TANF) benefits. Additionally, QCOs help residents of Arizona who may be low-income or supporting children suffering from a serious illness. A QFCO does this, as well, but they have another requirement. They have to spend at least half of their budgets on services for children that have been placed in either child welfare agencies or foster care homes. Paz de Cristo qualifies as a QCO for the work that we do to assist those in the community that go without food, clothing, or hygiene products. We offer food boxes and more!

Is It Too Late to Donate for 2021?

Many people have the misconception that they have to carry out their charitable donations by the end of the calendar year. In reality, the deadline to make a donation to a QCO or QFCO for this tax year is April 15, 2022.

Make Your Tax Dollars Count

To learn more information about how you can use your tax dollars to benefit a tax deductible charity, reach out to our working poor charity today. The professionals at Paz de Cristo would be happy to get you on your way to a more fulfilling tax season. If you don’t have the money to donate, reach out to learn about volunteer opportunities!