The Arizona Department of Revenue (ADOR) advises taxpayers they have until May 17 to make donations to qualifying charitable organizations to claim the tax credits on their 2020 individual income tax return. Details about the process to claim those qualified charitable donations for 2020 are included here. We hope this information is useful to you, and R&A is always available to assist you.
Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations
Arizona provides two separate tax credits for individuals who make contributions to charitable organizations: one for donations to Qualifying Charitable Organizations (QCO) and the second for donations to Qualifying Foster Care Charitable Organizations (QFCO).
ADOR assigns a five (5) digit code to identify each QCO (claimed on Form 321) and QFCO (claimed on Form 352) for Arizona tax credit purposes. The credit form is included with the Arizona income tax return when filed. Taxpayers must use each certified charity’s assigned code to claim the tax credit for contributions to QCOs or QFCOs.
The department provides the lists of certified charities and assigned code for each organization. A taxpayer can only claim a tax credit for donations made to certified charities.
The lists of the certified charities on azdor.gov displays the certified charities for that year.
- For donations made in 2020 – use the 2020 list.
- For donations made from January 1, 2021 to May 17, 2021 – use the 2021 list.
There are separate lists for QCOs and QFCOs, and they are claimed on different forms; QCO (claimed on Form 321) and QFCO (claimed on Form 352). Taxpayers should verify they are using the correct list as they are separated into two columns.
If a taxpayer donates to an organization between January 1 and May 17, 2021, the organization must be on the 2021 list to claim the 2020 tax return.
QCOs are currently going through the recertification process for 2021 contributions, and not all 2020 certified QCOs are certified for 2021. ADOR is actively working with organizations to update their information and certify them as soon as possible. During filing season, ADOR publishes a revised list at the end of each week. Be sure your software is up-to-date before filing to ensure you have the most updated information.
For more information on charitable tax credits in the state, what forms to use, and to confirm certified charities, see https://azdor.gov/tax-credits/contributions-qcos-and-qfcos or contact us for guidance.
About this Author
Laura specializes in income tax return preparation, compliance, and research for individuals and businesses. She also is experienced in preparing compiled and reviewed financial statements, individual and S-Corporation taxation, multi-state taxation, and income tax credits including the R&D credit.