Tax Credit FAQ
Frequently Asked Questions
Q: Where can I get more information about the tax credit?
A: You can get more information by visiting the Arizona Department of Revenue website or by calling Taxpayer Assistance at (602) 255-3381 or (800) 352-4090. Please consult your tax advisor for specific questions as tax circumstances vary.
Make your Arizona tax credit contribution this year. Contributions must be received before April 15th, 2023 to get the Tax Credit on your state return!
Donating to Fresh Start can qualify you for tax credits, known as the Arizona Tax Credit to Qualifying Charitable Organizations (QCO)
Q: How do I qualify for Arizona Charitable Tax Credit for Qualifying Organizations?
A: If you make a cash donation (cash, check, credit card payment) to Fresh Start and you file an Arizona state tax return, you may qualify for the tax credit. Donations of clothing, food or other tangible items do not qualify.
Q: What is your Qualified Charitable Organization (QCO) Code?
A: Fresh Start's QCO Code is: 20525 - remember to keep your donation receipt (provided by Fesh Start), fill out AZ Form 321 and include it with your state tax filing.
Q: Can I take this credit and other credits such as credit for donations to schools and foster care agencies?
A: Yes, they are separate credits and you can take advantage of all of them.
Q: What is the difference between a tax credit and a tax deduction?
A: A tax credit is significantly more beneficial than a tax deduction. A tax credit reduces your taxes, dollar-for-dollar. A tax deduction reduces the taxable income upon which your tax liability is calculated.
Q: Do I have to donate $400 or $800 at once?
A: No, you do not have to donate the whole amount at once. Donations given throughout the year that add up to the $400 and $800 limits qualify for the tax credit. We can even set up a monthly gift option for you to spread the gifts out over the year.
Credit for Donations
Formerly known as the Working Poor Tax Credit, the Arizona Tax Credit to Qualifying Charitable Organizations allows Arizona taxpayers to receive a dollar-for-dollar tax credit of up to $800 joint/married and $400 individual on state taxes when they donate to Fresh Start.
◦ You do not have to itemize
◦ You can donate to this AND to the public school, private school, foster agencies, and other tax credits
◦ You can use the same donation as a deduction on your federal return
When you fill out your Arizona tax return, complete the very simple Form 321 and deduct the amount of your gift, up to $400 per individual or $800 per couple filing jointly, from what you owe in state taxes for the year. Remember to include your charitable donation on your federal tax return and you can end up getting back more than you donated.
Tax circumstances vary greatly. Please consult your tax advisor for specific questions related to your tax situation.
Jaime Taxpayer, a single individual, donated $400 to Fresh Start in 2022. Jaime owes $500 in 2022 state income taxes. The tax credit reduces the taxes owed by $400. Jaime now owes $100 instead of $500.
Mary and Robin Taxpayer, a married couple, donated $800 to Fresh Start in 2022. Mary and Robin owe $800 in 2022 state income taxes. The tax credit reduces their taxes owed by $800. Mary and Robin now owe $0 instead of $800.