It's official! We are now an Arizona Qualified Foster Care Charitable Organization

Certificate

 

The state of Arizona offers a tax credit for donations made to Qualifying Foster Care Charities. Your donation is a dollar-for-dollar tax credit on your Arizona taxes up $1000.

Taxpayers filing as “single” and “head of household” status may claim a maximum credit of $500. Taxpayers filing as “married filing separate” may claim a maximum credit of $500. Taxpayers that file as “married filing joint” may claim a maximum credit of $1,000.

This is a WIN WIN for you and Boost a Foster Family. You make your donation throughout the tax year (and up to the tax filing deadline) and the funds return to you against your tax liability!

If you take advantage of other AZ State credits  (Public School Tax Credit, Private School Tuition credit, and the Qualifying Charitable Organization Credit),  you can ALSO take the QUALIFYING FOSTER CARE CHARITABLE ORGANIZATION CREDIT.

Even a person or youth with a part-time job, filing a simple form is able to redirect their taxes. The tax credit is available only to individuals and residents who file taxes in Arizona.

Questions? See our FAQ's below.

 

 

 

FAQ's about the Arizona Foster Care Tax Credit:

What is a Qualifying Foster Care Charitable Organization?

A Qualifying Foster Care Charitable Organization is a charity which meets the requirements for a Qualifying Charitable Organization in addition to:

  • Providing ongoing services to at least 200 qualified individuals in the foster care system.
  • Spending at least 50% of its budget on ongoing services to qualified individuals in the foster care system.

A charity must apply for and meet all requirements of the law to be considered as a Qualifying Foster Care Charitable Organization. Approved Qualifying Foster Care Charitable Organizations’ names are listed on the Department of Revenue’s website. A “qualified individual” means a foster child  as defined in section A.R.S. §8-501 or a person who is under twenty-one years of age and who is participating  in a transitional independent living program as prescribed by section A.R.S. §8-521.01.

How do I claim the Foster Care credit?

The credit is available only to individuals. You report the name of the Qualifying Foster Care Charitable Organization you donated to as well as the dollar amount of your donation to the Department of Revenue on Form 352. You must also total your nonrefundable individual tax credits on Form 301 and include all applicable forms when you file your tax return.

How much can I claim for the Foster Care credit?

Taxpayers filing as “single” and “head of household” status may claim a maximum credit of $500. Taxpayers filing as “married filing separate” may claim a maximum credit of $500. Taxpayers that file as “married filing joint” may claim a maximum credit of $1,000.

Do I have to itemize deductions to claim the credit?

No. Starting with the 2013 tax year, you do not have to itemize deductions to claim a credit for contributions to a Qualifying Charitable Organization. For 2012 and prior, you were required to itemize deductions on your Arizona return in order to claim a credit for contributions to a Qualifying Charitable Organization.

Do I get a deduction or a tax credit for donations to a Qualified Foster Care Organization?

You may only claim a tax credit for your charitable contribution on your Arizona state return if the organization you donated to is considered a Qualifying Charitable Organization (Boost a Foster Family is a Qualifying Foster Care Charitable Organization!).

You cannot claim both a deduction and a credit for the same charitable contribution on your Arizona return.

Does this tax credit apply to my Federal tax return?

The Arizona Foster Care Tax Credit is only a dollar-for-dollar reduction on your AZ State taxes. You may also be able to claim a federal tax deduction for the amount donated. Check with your tax professional.

What is the period for making contributions?

Beginning with the 2016 tax year, credit eligible contributions made to a  Qualifying Foster Care Charitable Organization that are made on or before April 15th (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 is considered to have been made on the last day of that taxable year.

 

I donated earlier in 2017 before BOOST was approved, are my earlier contributions eligible for the credit?

Yes! Any donation made to Boost a Foster Family from January 1, 2017 to April 15, 2018 is eligible for the tax credit on your 2017 AZ tax return.

What if I do not owe AZ State taxes?

Charitable Tax Credit dollars may be carried forward for up to five years, reducing future tax liability.

I take an AZ tax credit for school donations, can I get the Foster Care Credit too?

Yes! Taxpayers may combine several tax credits each year:
Arizona Foster Care, Working Poor, Private School and Public School.