Growing up, my mom would take my siblings and me to the grocery store with her. We didn’t have a lot of money to get cart loads of the best cereal or the brand name snacks, but what we did have were coupons. Envelopes full of 12% off this or 25% off that. Not to mention I made it a game to try and find them throughout the store on those red pull tabs that no longer exist (unfortunately).
I always found it fascinating how it worked. What do you mean you can use a bunch of these coupons and they just take money off your total? My mom explained it to me and of course there were some rules to how you can use them. You couldn’t use the same coupon on the same item over and over again during the same visit, but you can use multiple coupons on a variety of items during the same visit. Okay, I think I’m getting the hang of this. You can “stack” the coupons. Using the rules to get the most out of your dollar and get the necessities that keep a household thriving.
When I first started at Art Heals Arizona (formerly Free Arts) I was learning more about the QFCO tax credit and how it worked. What were the rules? The more I asked, the more I realized this is kind of like couponing, or at least I thought of it that way. I started learning more about the other tax credits in Arizona and how I can “stack” them like coupons. I can give to a Qualifying Foster Care Charitable Organization (QFCO) and a Qualifying Charitable Organization (QCO) and get the credit max for both. For example, if I donate $1,234 to Art Heals Arizona, I can get that money back as a dollar-for-dollar credit on my 2025 state tax return. And if I wanted to reduce my tax liability (how much I might owe) even more I wouldn’t be able to donate to another QFCO to get more credit—the coupon can only be used once; however, I can donate to a QCO the maximum donation for a tax credit, $987 for 2025, and reduce my liability even more.
Like stacking coupons! Who would’ve thought?
Just like my mom would gather coupons from the Sunday paper to get my siblings and me everything we needed, I can make sure that my money is going to help youth in Arizona get the necessary and supportive programming we offer here at Art Heals Arizona.
And if you’re unsure of where else you can “stack” your donations one QCO-qualifying organization with a similar mission to Art Heals is Rosie’s House: A Music Academy for Children. Their mission is to eliminate barriers to high-quality music education. Through music, they support youth as they develop their full creative and personal potential. If you maximize your tax credits to both organizations, it will result in total tax savings of $1,113 if you’re single or filing separately and $2,221 if you’re married filing jointly. Learn more about Rosie’s House at www.rosieshouse.org/taxcredit) and Art Heals Arizona at www.arthealsaz.org
When you stack your credits, children win!
Now you know the basics, but how exactly does it work? Let’s use making a QFCO gift to Art Heals Arizona as an example — It’s as easy as 1, 2, 3, 4!
- Make a charitable donation.
- Save your acknowledgement letter (an email also counts) so you can provide a copy with your Arizona tax return.
- Complete Arizona Form 352 when preparing your return. If you make your QFCO gift to Art Heals Arizona, make sure you enter Art Heals Arizona’s QFCO code, #10015, on the form.
- Kick your feet back and relax. You are wrapping up your taxes for the year, kudos!
Please consult your tax professional if you have any questions about your specific tax situation. For more information on the credit and how to claim it check out the AZDOR.
