Tax Credit FAQ

A quick overview

The Arizona Tax Credit laws specifically describe the allowance of a tax credit as donations made to Qualifying Charitable Organizations (such as Christian Care Health Center) that provide assistance to low income residents of Arizona.  This was formerly referred to as the “Working Poor Arizona Tax Credit.” 

These tax credit donations enable private money, not public money, to ease the burden placed on the state to care for the basic needs of the poor.  In order to encourage and reward taxpayers for their donation to a Qualifying Charitable Organization, Arizona will grant a tax credit to the taxpayer in return for their donation when they file their income tax returns.


How can I donate?

You may donate online or mail your check to:

Christian Care Foundation, Attn. Bill Tennison
6945 E. Main Street, Bldg. 5
Mesa, AZ 85201

 

How much can I donate?

For 2016, you can donate up to $800 as a married couple filing jointly or up to $400 as a single filer.  This amount is double the allowable deduction from 2015.  

 

Can I donate less?

The maximum donation amounts are $800 for joint filers and $400 for single filers. Any donation is acceptable and will be greatly appreciated by our residents!

 

Is my entire donation eligible to use as a Tax Credit?

Your 2016 Tax Credit cannot exceed your 2016 tax liability.  For example, if you file jointly and your 2016 Arizona Income tax due amounts to $740, your maximum tax credit available is $740.  If you donate more than your tax liability, you can carry forward that excess credit for five tax years.

 

How much of my donation goes to help the Christian Care Health Center and how much is used for administration?

Your entire donation is used for the Health Center. None of these donations are used for administration purposes.

 

When can I donate?

For a state tax credit, you may donate at any time during 2016, or from January 1st to April 15th in 2017.  This is the same criteria as completing an IRA contribution.

 

What if I already donate to, and take a tax credit for, private schools, public schools and/or foster care organizations? 

Arizona taxpayers may claim any part of one, two, three or all four of these Arizona tax credits in any given year.  Just remember, the total of all your tax credits may not exceed your total tax liability. 

 

How do I “take” my credit? 

The Foundation will send you a receipt and all the necessary tax forms for your taxes.  We also have the Arizona tax forms available for download here:

AZ Form 321 Instructions

AZ Form 321

How does a tax credit differ from a tax deduction?

A tax credit reduces the Arizona income taxes you owe dollar-for-dollar, while a deduction reduces the taxable income upon which the taxes are calculated.  In other words, a tax credit counts as paying your taxes, a deduction only reduces your taxable income.

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