SANDS cannot provide tax advice, and disclaims any responsibility related to the information provided. This information is provided on a best-effort basis. You should verify this information with the AZ Department of Revenue and/or your tax professional.
See https://azdor.gov/tax-credits/credits-contributions-qcos-and-qfcos for more details.
Overview
Claiming the AZ tax credit for donations to QCOs (Qualified Charitable Organizations) is generally very easy ... after you get used to it the first time. The first time can be a little bit of a challenge because there are a few details that you need to know, and an extra form or two you will need to file.
The AZ Department of Revenue’s website about the QCO (and QFCO) tax credit is available at https://azdor.gov/tax-credits/credits-contributions-qcos-and-qfcos. Please visit the website for additional information, clarification, and updates.
Keys Points to Keep in Mind
It is a dollar-for-dollar credit, which means you can get back up to 100% of your donations to SANDS and other QCO charities
The credit has a dollar limit; if you donate more than the limit (thank you!), you can only get back an amount up to the limit.
The credit is for all of your donations to QCO charities combined. The AZ Department of Revenue provides an annual list of QCO charities. There are also QFCO charities, which is a different credit. SANDS is a QCO charity, so please refer to the QCO list.
You can donate up to April 15th and claim it on your return for either tax year.
See https://azdor.gov/tax-credits/credits-contributions-qcos-and-qfcos for more details.
Credit Limits
For 2026, $1009 is the credit limit if you file as married filing jointly, otherwise $506
For 2025, $987 is the credit limit if you file as married filing jointly, otherwise $495.
For 2024, $938 is the credit limit if you file as married filing jointly, otherwise $470.
It is important to note that the credit is non-refundable, meaning that you cannot get back more than what you had to pay in Arizona taxes. For example, if you had to pay $1200 in AZ taxes, and file jointly with your spouse, you can donate up to $987 in 2025 and get all of it back. But if you had to pay $600 in AZ taxes, then you can only get back up to $600, not $987.
Keep in mind that other tax credits, like the QFCO tax credit, may reduce the amount you can get back from this credit.
Tax Time is a Great Time to Donate
If you are close to the limits, tax time can be a good time to determine what you can donate without any cost to you. Do your taxes first, and if the form shows you had to pay taxes, and you did not use up your QCO credit, please consider making a supplemental donation to SANDS and/or other QCO charities (and then QFCO charities if you can). You can make the donation up to April 15th, and claim it on the prior year's tax return, getting your donation back by lowering your tax bill or increasing your refund.
How to Claim the Credit
The first time claiming the credit is the hardest, but once you get used to it, it is pretty easy to do, even if you fill out your taxes manually. And it is worthwhile; you get to donate to SANDS and other wonderful charities at no cost to you!
Below are some general instructions for claiming the credit using different methods.
DIY: Fill Out AZ Forms Yourself
To claim the credit manually - the hard way - you will need to print out and file the following forms. Going through this once the manual way can be fairly educational, but it does take a lot more effort than using software like TurboTax, or using a paid tax preparer.
This is the form you use to report donations you made to SANDS and other QCO charities. SANDS QCO code is 22259. Enter the amount(s) you donated during the tax year in Part 1 (A). Enter donation(s) you made the following year, up to April 15th, that you want to claim on your taxes, in Part 1 (B). Then follow the remaining instructions on the form.
This form is used to add up many different credits you can claim. Use line 6 “Credit for Contributions to Qualifying Charitable Organizations” for the QCO credit from AZ Form 321.
This is the main form that pretty much everyone files, or one similar to it. Your credits from the last form, AZ Form 301, go on line 51 “Nonrefundable Credits from Arizona Form 301, Part 2, line 62”.
Take a close look at line 46 on AZ Form 140. This is your AZ tax amount. Basically it is what you had or have to pay in AZ taxes. Credits come after this. The most you can claim for the QCO credit is this amount minus all other tax credits you are already claiming, up to the limits for the year you are filing taxes for. Part 2 on AZ Form 301 walks you through the math.
Software: TurboTax (desktop)
TurboTax (desktop) presents several screens that let you easily claim the QCO credit for your donation(s) to SANDS and other QCO charities.
In the Arizona section, check the box for "Contributions to qualified charities (Form 321)" on the "Other Nonrefundable Credits" screen.
On the Donations to Charitable Organizations screen, select the check boxes for the dates you made donations that you want to claim on this tax return.
Name of Charity: SANDS or Southern Arizona Network for Down Syndrome. Charity Code: 22259. Enter amount donated and date.
On this screen, you can add other QCO charities you donated to with the "Add" button. Then confirm the information and go to the last screen.
Review the final screen and continue if it looks right.
Getting Help
Edward Espinoza, an independent Tax Consultant at The Tax Baron, has volunteered to answer general questions about the tax credit for SANDS donors. He is also available to do your entire tax return as well, for a fee. You can contact Mr. Espinoza for general AZ QCO tax credit questions, or to have your tax return prepared for a fee, at:
