Arizona Foster Care Tax Credit

Officially known as the Qualified Foster Care Charitable Organization (QFCO) Tax Credit. It is the best “feel wonderful” deal in Arizona, because it allows taxpayers to support vulnerable children while reducing their state tax bill.

What Is the Foster Care Tax Credit?

It’s a dollar-for-dollar credit on your Arizona state income tax for donations made to certified nonprofits that serve over 10,000 children in foster care. To qualify, these organizations must:

• Be 501(c)(3) charities
• Serve at least 200 qualifying foster children annually
• Spend at least 50% of their budget on direct services to foster youth in Arizona

Why should you use your foster care tax credit?

Your donation helps fund:

• Basic needs: clothing, food, hygiene supplies
• Kid normalcy activities: sports, summer camps, music lessons
• Education & career support: scholarships, job training, mentoring
• Transitional services: housing and life / career start skills for youth aging out of foster care

These are things the state often doesn’t cover, but they’re essential for helping foster youth thrive.

Is there an online list of foster care nonprofits that qualify?

AZTaxCreditList (this website!) – provides an online version of the QCFO list adding additional information about each charity.

AZ Dept of Revenue (ADOR) provides a downloadable PDF QFCO list of codes, names and addresses.

How much can I donate and receive a full tax credit?

Any amount up to $618 for individuals and $1,234 filing jointly can be claimed as QCFO tax credits. You can claim this in addition to other Arizona credits (like QCO, school, and military family relief fund credits).

Is there Donation Deadline?

Donations made by April 15, 2026 can be applied to your 2025 tax return. This gives you flexibility to plan your giving even after the calendar year ends.

How do I Claim the Credit?

Donate to a certified QFCO, note the organization’s five-digit QFCO code, keep your receipt, file Arizona Form 352 with your state tax return,

If your donation exceeds your tax liability, you can carry the unused credit forward for up to five years.

For the Arizona tax credit claimed, you cannot also Federally itemize that same deduction.

Donation made over the allowable tax credit limits can be claimed (including Federally) if you itemized deductions as well.