What is the Arizona Foster Care Tax Credit?
This is a charitable contribution you can give to qualifying 501(c)(3) organizations that work with over 200 foster children in a year.
With it, you can reduce what you owe in state taxes by $1000 (married couples) or $500 (single filers) – all at no additional cost to you. In other words, you can either pay the State or you can give to serving at-risk children through Christian Family Care.
Does this foster care tax credit also apply to federal tax returns?
The Arizona Foster Care Tax Credit is a dollar-for-dollar reduction on your State taxes. Not just a deduction but actual tax credit. Check with your tax professional.
How do I know if I qualify?
The credit is for Arizona taxpayers with income filing as:
- married filing jointly: up to $1000
- single or unmarried head of household: up to $500
- separate returns: up to $500
How do I claim the credit for contributions to a Qualifying Foster Care Charitable Organization?
The credit is available only to individuals/couples filing in Arizona. Christian Family Care’s Qualifying Foster Care Charitable Organization code is 10024. Place this code on form 352 when filing your Arizona tax return in order to take your tax credit.
Can I also take advantage of other State tax credits?
Yes! In addition to the Arizona Foster Care Tax Credit, you may also take advantage of tax credits available through private school tuition tax credit organizations, charitable tax credit (working poor tax credit), and the public school tax credit, further reducing your tax liability. Check with your tax professional.
Do I qualify for the credit if I do not owe taxes at year end?
The credit reduces your state tax liability independently from any tax that you may have withheld during the year.
If you withheld an amount equal to or greater than your tax liability, the credit will increase your state tax refund. And, you may carry the credit forward for five years.
For more specific information on the Arizona Foster Care Tax Credit, ARS 43-1088, consult your tax advisor or the Arizona Department of Revenue at (602) 255-3381. Or, go online to: Arizona Department of Revenue