What is the AZ Charitable Tax Credit?
In the state of Arizona, up to $421 per person or $841 per couple filing jointly (for tax year 2023) can be directly deducted, dollar-for-dollar, from the taxes you owe the state of Arizona.
Many people like the tax credit because it allows you to keep your tax dollars in your local community. By designating your tax credit to YOTO, you are effectively ensuring that local Pima County youth receive the support that they need to stay in school and succeed!
To put it in perspective, if you belong to a group (club, religious institution, workplace, etc.) of 50 people and all of you commit to donating your tax credit to YOTO, you would raise $20,000+ for the youth we serve without actually spending a dime yourselves. It’s that easy.
It sounds too good to be true, but it’s real! You can read the law here.
Is $421 the most I can deduct?
No! There are several tax credits available in Arizona. Youth On Their Own qualifies for the “Qualified Charitable Organization” (QCO) tax credit. You can designate YOTO for your QCO tax credit AND make gifts to the other types of tax credits. You can read about the different kinds of credits here.
Didn’t it used to be a different amount?
Yes! A revised statue was passed by the Arizona Legislature in 2022 making the amount variable each year to account for inflation. The dollar amount shall change based on the average annual change in the metropolitan Phoenix consumer price index (CPI) and will never decrease.
What do I have to do on my taxes to make this deduction?
The AZ Tax Credit is very easy to claim. As regulations are always changing, however, we recommend that you talk to your financial advisor or tax professional for specifics. This year, the State of Arizona has issued a Qualified Charitable Organization (QCO) Code to all qualifying organizations. YOTO’s QCO Code is 20365. You can verify this information (and see a list of all current QCO Codes) here.
Do I need to tell YOTO that I am using my donations as a tax credit?
Nope! While we appreciate knowing if you plan to use your donation for a tax credit, it’s not necessary that we indicate this in our files.
Is any contribution I make to YOTO tax deductible?
Generally, contributions that do not involve the purchase of goods or services are deductible. For example, a donation made at YOTO’s annual spring lunch would be deductible, but the ticket to the event would not. Please speak with your financial adviser or tax professional to determine which contributions are and are not deductible.