A TCI Perspective on Giving and Community
At TCI Wealth Advisors, we believe investing goes beyond portfolios; it is about investing in our communities and the people who shape them. Each year, we share this Arizona Tax Credit overview to help individuals and families understand how they can make a meaningful impact while maximizing their tax benefits.
Arizona’s tax credit programs make it possible to direct a portion of your state income tax to causes that matter to you. Whether you support local schools, foster care organizations, or military families, these programs are a powerful way to give with purpose.
How Do These Credits Work?
The 2025 Arizona Tax Credit programs allow individuals to make a positive charitable impact while reducing their Arizona income tax liability. Contributions under the programs below reduce your Arizona tax dollar for dollar by the amount donated, essentially allowing you to pay part of your taxes directly to local charities instead of the state.
You do not need to itemize deductions to take advantage of these credits. However, because most of these contributions are not deductible on your federal return, please consult your tax preparer for advice specific to your situation.
Arizona School Tax Credits
Arizona offers several credits related to school donations.
Private School Tuition Organization (Form 323)
Credit up to $769 single or $1,535 married filing jointly.
Contributions go to certified tuition organizations that provide scholarships for private school students.
You cannot designate your own dependent but may name another student or relative.
PLUS / Switcher Credit (Form 348)
Additional credit up to $766 single or $1,527 married filing jointly.
To qualify, you must first donate the maximum allowed under the Private School Tuition Organization credit.
Public School Fee Credit (Form 322)
Credit up to $200 single or $400 married filing jointly.
Supports extracurricular activities, character education, standardized test fees, and other qualified programs at public and charter schools.
Fees can be paid for your own child’s participation.
Donations made by April 15, 2026, can apply to either the 2025 or 2026 tax year.
You may claim all three school tax credits in the same year for a total of $1,735 single or $3,462 married filing jointly.
Arizona Qualifying Charitable Organization (Form 321)
Credit up to $495 single or $978 married filing jointly.
Supports certified Arizona charities providing basic needs such as food, clothing, and shelter.
View the list of Qualifying Charitable Organizations
If you are interested in learning how charitable giving can fit into your broader plan, visit our Charitable Giving Strategies page.
Arizona Qualifying Foster Care Charitable Organization (Form 352)
Credit up to $618 single or $1,234 married filing jointly.
Benefits organizations supporting children in foster care and families in need.
View the list of Qualifying Foster Care Organizations
Arizona Military Family Relief Fund (Form 340)
Credit up to $200 single or $400 married filing jointly.
Helps service members and their families facing hardship due to deployment.
Donations are capped at $1 million per year and accepted on a first-come, first-served basis.
Contributions must be made by December 31, 2025, and accompanied by a receipt from the Arizona Department of Veterans’ Services.
Visit the Military Family Relief Fund page
Additional Details to Know
Carryforward Period: Most unused credits (except the Military Relief Fund) can be carried forward for up to five years.
Donation Timing: Contributions made by April 15, 2026, can apply to either 2025 or 2026 returns.
Recordkeeping: Keep receipts for all donations and share them with your tax preparer.
Eligibility: Credits apply only to individual taxpayers. S-corporation shareholders may have additional opportunities; consult your CPA.
Key Takeaways
Maximize Arizona Tax Credits: Arizona taxpayers can claim up to $6,074 married filing jointly or $3,048 single across all eligible credits.
Direct Your Dollars Locally: Support schools, nonprofits, and military families in your community.
No Federal Deduction: These credits reduce Arizona tax liability dollar for dollar but typically are not deductible federally.
Act Early: Military Relief Fund credits run out quickly each year.
Keep Records: Receipts are required to claim the credit.
Why TCI Shares This Each Year
As an independent, employee-owned firm, TCI Wealth Advisors is deeply rooted in the communities we serve. Sharing this guide each year reflects our belief that financial well-being and community well-being go hand in hand. We want individuals to have clear, accessible information to make confident, values-aligned decisions for their families and their communities.
If you have questions about how charitable giving fits within your broader financial plan, we encourage you to connect with your advisor or contact our team.
You can also find your nearest TCI office in Arizona to meet with one of our advisors in person.
Disclaimer:
This material is for informational purposes only and not intended as tax advice. TCI Wealth Advisors is not a law or accounting firm and does not prepare or file tax returns. Always consult your tax preparer for advice specific to your circumstances.
