Tax Credits

Your Arizona Charitable Tax Credit Dollars can make a difference in the lives of homeless women and children!

Did you know that by donating to Prescott Area Shelter Services you are eligible for the Arizona Charitable Tax Credit? The Charitable Tax Credit is a charitable contribution you can give to qualifying Arizona charitable organizations. Prescott Area Shelter Services is an approved recipient.

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). Individuals making cash donations made to these charities may claim these tax credits on their Arizona Personal Income Tax returns. Effective in 2016, credit eligible contributions made on or before the 15th day of the fourth month following the close of the taxable year may be applied to either the current or the preceding taxable year and are considered to have been made on the last day of that taxable year.

Effective in 2018, the Arizona Department of Revenue has assigned a five (5) digit code number to identify each Qualifying Charitable Organization and Qualifying Foster Care Charitable Organization for Arizona tax credit purposes on Form 321 and Form 352, which is included with the Arizona income tax return. Taxpayers must use the “QCO code” or “QFCO code” of certified organizations to claim the tax credits for contributions QCOs or QFCOs. The department’s lists of qualifying charities include the code assigned to each organization. The Qualifying Charitable Organization (QCO) Code for PASS is 20392.  Click to download more information HERE.

For the 2025 tax year in Arizona, the maximum Qualified Charitable Organization (QCO) credit is:

• $987 for couples filing jointly.
• $495 for single filers, heads of household, and married couples filing separately.

Other important details

• Donation period: To claim the credit for your 2025 taxes, you can make your donation between January 1, 2025, and April 15, 2026.
• Claiming the credit: The credit is a dollar-for-dollar reduction of your Arizona state tax liability, up to the maximum amount for your filing status.
• Claiming on returns: The credit is claimed on Arizona Form 321.
• Carryforward: If the credit exceeds your tax liability, you can carry forward the unused portion for up to five years.
• Other credits: The QCO credit is separate from and does not affect the Arizona tax credits for schools or Qualifying Foster Care Organizations (QFCO). For 2025, the QFCO credit limit is $1,234 for joint filers and $618 for single filers.