Recent AZ Tax Law Benefits Charitable Giving

October 11, 2019

If you filed your Federal Tax returns and took the newly increased “Standard Deduction”, you may have discovered that can no longer deduct charitable contributions. Thankfully, Arizona recently passed a law allowing for a 25% state tax deduction on charitable contributions to not-for-profit organizations. You don’t even have to itemize on your Arizona tax returns to receive this deduction. This is wonderful news for Arizona residents!

What about the Arizona Qualifying Charitable Tax Credit

You can still donate up to $400 per individual/$800 per couple for AZ Qualifying Charitable Tax Credit and receive a dollar-for-dollar tax credit on your AZ State taxes. Since this already provides a dollar-for-dollar tax credit, the 25% deduction would not apply to this gift. But, any donations that exceed this amount are eligible for the 25% deduction.

What is the benefit of this law?

This additional tax relief will help donors stretch their charitable dollars so they can continue to make positive impacts in their communities, despite recent Federal Tax deduction limitations!

If you are interested in making a difference in the lives of older adults with dementia, adults with disabilities, children, and the families that care for them, please call 623-584-4999 or visit our website at for ways to give