ARIZONA FOSTER CARE TAX CREDIT – FAQ

Is this the “Working Poor Tax Credit?”
No. The Arizona Department of Revenue no longer uses the phrase “Working Poor Tax Credit.” However, The Foster Care Tax credit falls under ARS §43-1088, which was formerly called the “Working Poor Credit.” When ARS §43-1088 was recently revised the formal name of the credit became “The Credit for Donations made to Qualifying Charitable Organizations.”

To summarize, the Foster Care Tax Credit is authorized today by ARS §43-1088 under the name “The Credit for Donations made to Qualifying Charitable Organizations.”

Is Hope & A Future a Qualifying Charitable Organization?
Yes. Hope & A Future is a Qualifying Charitable Organization under ARS §43-1088.

Specifically, Hope & A Future is certified by the Department of Revenue as a Qualifying Foster Care Charitable Organization.

What are the limits for the Arizona Foster Care Tax Credit under ARS §43-1088?
Because Hope & A Future is a Qualifying Foster Care Charitable Organization, married taxpayers can donate up to $1,000 and single taxpayers up to $500 to Hope & A Future. These are new limits established in 2016.

Can a taxpayer donate to more than one qualifying charity?
Yes. A taxpayer may give to non-foster care qualifying charitable organizations too. Starting in 2016, married taxpayers may also donate up to $800 and single taxpayers up to $400 to non-foster care charitable organizations and receive a tax credit. Donations to non-foster care organizations are an entirely separate credit and don’t count against what taxpayers can give to foster care organizations.

Where do I claim the credit?
To claim the credit, taxpayers must complete Arizona Form 352. Click here for Form 352 and instructions.

Can I also take advantage of other State tax credits?
Yes. Donating to Hope & A Future does not limit your ability to give under other Arizona tax credits, such as the private and public school tax credits or to other non-foster care charities. You can give and benefit under all Arizona tax credits! Check with your tax professional.