Arizona offers several state tax credits for 2025, and we want to ensure everyone is aware of the opportunities available.
Charitable Tax Credits: QCOs and QCFOs
For tax year 2025:
- Qualified Charitable Organization (QCO):
- Up to $495 for single, head of household, or married filing separately
- Up to $987 for married filing jointly
- Qualifying Foster Care Charitable Organization (QFCO):
- Up to $618 (single)
- Up to $1,234 (married filing jointly)
These credits encourage direct support of local charities, shelter care programs, and food banks. Important: contributions must be in cash (not goods or services) and made to state-certified organizations.
Public School Tax Credit
Arizona continues to lead in directing state dollars to support education. In 2025:
- Claim up to $200 (single) or $400 (married filing jointly)
- Contributions support extracurricular activities and certain school fees
- Can be combined with other state tax credits
Important note:
- These credits are not refundable. They reduce tax liability rather than providing a refund.
- Example: A married couple contributes $400 to a qualified school, with $250 in state withholding and a $475 tax liability. The $400 credit reduces the liability to $75, leaving $175 refunded from leftover withholding.
- Grandparents or others with only Social Security and no state tax liability will not receive a refund for contributions.
Private School Tuition Credit
Larger savings are possible through the Private School Tuition Credit. Maximum donation amounts for 2025:
- $769 for single, married filing separately, or head of household
- $1,535 for married filing jointly
This credit allows donations to any certified school tuition organization, providing a dollar-for-dollar state tax credit, assuming there is a state tax liability.
Questions? We’re Here to Help
If you have any questions, Meikle Financial Group is here to help. Our team’s tax expertise is a valuable resource for our investment clients, and we look forward to assisting with any tax planning needs you may have.
