How to Claim the Working Poor Tax Credit in Arizona

The Arizona Charitable Tax Credit, formerly the “Working Poor” tax credit, is a dollar-for-dollar credit that reduces your state income tax by the amount of your contribution. The program encourages residents to support nonprofit organizations that provide direct assistance to low-income individuals and families within the state. By contributing to these charities, taxpayers can support essential services in their communities.

Eligibility and Contribution Limits

Your donation must be made to a state-approved Qualifying Charitable Organization (QCO) or a Qualifying Foster Care Charitable Organization (QFCO). These are separate credits with their own contribution limits, and you can claim both. These are nonrefundable credits, which means they can reduce your tax liability to zero, but you will not receive a refund for any amount that exceeds what you owe.

For the 2025 tax year, the maximum credit for donations to a QCO is $495 for individuals with a filing status of single, married filing separately, or head of household. For those who are married and filing a joint return, the maximum credit is $987. The limits for QFCOs are higher, allowing a maximum credit of $618 for single, married filing separately, and head of household filers, and $1,234 for married couples filing jointly.

Contributions can be made during the calendar year. Arizona law also provides a grace period, allowing donations made up to the tax filing deadline, April 15th of the following year, to be applied to the preceding tax year. For instance, a donation made by April 15, 2026, can be claimed on your 2025 tax return.

Finding a Qualifying Charity

QCOs are charities that provide for the immediate basic needs of low-income Arizonans or individuals with chronic illnesses or physical disabilities. QFCOs are specifically focused on providing services to children in the foster care system. To ensure your donation qualifies for the credit, you must contribute to an organization that has been certified by the state for the year of the donation.

The Arizona Department of Revenue (AZDOR) maintains the official lists of all certified organizations. Taxpayers should visit the AZDOR website to find these published lists, which are updated annually. These lists are the only reliable source for verifying a charity’s status.

Required Information and Forms

You must gather several key pieces of information for each donation:

• The full name of the charitable organization
• The unique 5-digit QCO or QFCO code obtained from the AZDOR website
• The specific date you made the contribution
• The exact dollar amount of your donation
• Your name and Social Security Number as they appear on your tax return

The state of Arizona requires the completion of a specific form to calculate this credit. For contributions to QCOs, you must use Arizona Form 321, and for contributions to QFCOs, you must use Arizona Form 352. These forms can be downloaded from the Arizona Department of Revenue website.

Claiming the Credit on Your Tax Return

Once you have completed the appropriate forms, transfer the calculated credit amount to your main Arizona income tax return. The specific location for this entry depends on the form you use to file your state taxes, such as Form 140 for full-year residents, Form 140PY for part-year residents, or Form 140NR for non-residents. You will enter the total credit amount on the designated lines for these credits.

After entering the credit amount, you must attach the completed Form 321 and/or Form 352 to your return when you file. Whether you are filing electronically or by mail, these forms must be included as supporting documentation. It is advisable to retain a copy of the completed forms and the original donation receipts for your personal tax records.