AZ Qualified Charitable Tax Credit
Arizona law allows taxpayers to redirect some of their state taxes to help people in need in our state. Through this program, you can receive a dollar-for-dollar credit on your state taxes and help support the ministry of the City Hope Center. This dollar-for-dollar tax credit is available for any contributions given to City Hope up to $841 (filing jointly) or $421 (filing single). See the FAQs below for more info.
City Hope is a 501c3 organization so all donations are federally tax deductible. The AZQCO tax credit is for state filing. More information about this tax credit and how to file are available below.
Tax Credit FAQs
How does the Charitable Tax Credit (CTC) work?
If you make a donation to an Arizona Qualified Charity, you can take a credit against your Arizona state income taxes. City Hope is a qualified charity. A credit is better than a deduction, as a credit is a dollar for dollar reduction in your tax liability.
Will I be refunded if I donate more than I owe?
First, be careful not to confuse “what I owe” with “what is my tax liability.” You may be getting a refund because you had more taxes withheld (from your paycheck, pension, other sources, etc.) than what your liability was. In this case, if you qualify for the CTC, you would get a larger refund. The direct answer to the above question is you cannot get a refund if you donate more than your income tax liability; however, any unused contribution may be carried forward and used up to five years after the donation.
Is there a limit to how much credit I can receive?
Yes. Your contribution amount, not to exceed $421 ($841 if married filing jointly). Otherwise there is a limit based on your income tax liability as discussed above.
How do I file for the credit?
Fill out Form 321 and include your year-end receipt from the City Hope when you file your tax return. The AZQCO number is 20813 for City Hope.
When is the last day I can donate?
The last day to donate for the state tax credit is April 15, following the close of the taxable year. Be careful to ensure that if mailed, the postmark date is April 15 or earlier. If making a contribution by credit card, the transaction date must be April 15 or earlier. To claim this donation on your federal taxes, it must be donated by December 31 of the tax year.
When will I receive a receipt from City Hope?
An electronic receipt for all annual contributions will be emailed to all donors in January after the completion of the tax year. If we do not have an email on file, your receipt will be mailed to you. If you need a receipt immediately, please contact us for an electronic or mailed copy of your receipt.
If I donate on the last day but it doesn’t hit my credit card until a few days later, do I still get the benefit of the CTC?
The IRS will view the transaction date as the point of reference.
Can I donate to receive both School Tax Credit and the Charitable Tax Credit?
The state of Arizona has a number of independent tax credits. The Public School–Extra-Curricular Tax credit and the Private School–Tuition Organization credits are two of these. Each work similarly, yet independently. As long as your tax liability exceeds the credit parameters of each, you can take advantage of the many tax credit programs available including CTC.
Do you have to itemize to qualify for the CTC?
It is not necessary to itemize to qualify for this credit.