Dollar for dollar – that’s the way the Arizona tax credit works for donations made to Qualified Charitable Organizations (QCO). That means you receive $1 off taxes owed for every $1 donated to QCOs. Arizona is one of the few states that offers this incentive that benefits charitable organizations, like Midwest Food Bank, and taxpayers.
This year, the limits have increased for donation amounts for this credit. Here are the maximum credits that can be claimed on the 2023 Arizona Tax Return for donations made to QCOs.
$421 – For single, married filing separate or head of household taxpayers.
$841 – For married filing jointly taxpayers.
Tax credits are different than tax deductions. Tax credits lower your tax liability or the taxes you owe the state of Arizona on your income. With Midwest Food Bank’s purchasing power, every $1 donated to MFB turns into $30 worth of food. It’s not only a dollar for dollar, but a win-win.
For more information and details about the Arizona Tax Credit, click here.
