Tax Credit Donation

Investing in Children Doesn't Cost You a Dime

Arizona provides a separate tax credits for individuals who make contributions to charitable organizations: one is for donations to Qualifying Charitable Organizations (QCO) such as Sunshine Acres Children’s Home. Individuals making cash donations made to these charities may claim these tax credits on their Arizona Personal Income Tax returns.
Effective in 2016, credit eligible contributions made on or before the 15th day of the fourth month following the close of the taxable year may be applied to either the current or the preceding taxable year and are considered to have been made on the last day of that taxable year.

Donation Deadline

Beginning in 2016: April 15 (for previous tax year)

Forms to File

AZ Form 321 & Instructions (QCO)

Maximum Credit for Any Tax Year.

Single or head of household: $421 (Qualifying Charitable Organization)

Married filing jointly: $841 (Qualifying Charitable Organization)


For more information about this tax advantage, please read the following commonly asked questions and their answers.
A: When you receive your W-2 and complete your tax return, one of three things will happen.
  1. You end up having no tax liability,
  2. You overpaid during the year and are receiving a refund, or
  3. You owe additional state taxes because not enough withholdings occurred during the year from your paychecks.

If you fall into #2 or #3, wou will pay Arizona state income taxes. Taking advantage of the tax credit allows you either to increase the amount of refund you receive from the state or decrease what you owe to the state. It also allows a say in where your tax payment actually goes.

A: Of course, Sunshine Acres Children’s Home will accept donations in any amount. New legislation in 2016 now means the most you can give that will qualify for the tax credit is:

  • $400 – Single Filer
  • $800 – Married Filer

A: Anyone can invest in our Miracle in the Desert. Anyone who pays Arizona state taxes, whether you itemize or not, single or married, can qualify for the tax credit.

A:  You must give before tax filing deadline for the tax credit to apply to the current tax year.

A: No! We do not receive government support for the children and though we are donor-funded, we do not conduct fundraising/solicitation for ourselves. As a 501(c)3 nonprofit organization, every contribution is valuable and necessary for our continued success. Our success depends entirely on generous individual, foundation and corporate donors and still today, we do not turn children away for financial reasons.

A: Yes. Tax deductions are expenses, including charitable donations, that reduce your total taxable income and therefore the amount of tax you pay. A tax credit is different: A tax credit allows you to redirect 100 percent of the amount designated (up to $400 for taxpayers filing jointly and $200 for individual taxpayers), dollar-for-dollar, to the areas you choose.

Additionally, if you itemize your taxes on your U.S. federal tax return, you may be able to claim your donation as a federal tax deduction, thus lowering the amount of federal tax you’ll pay to the IRS.*

We encourage you to check with your professional tax advisor for advice on your personal tax situation and to learn how charitable giving to Sunshine Acres may specifically benefit you.

For more detailed information regarding the Tax Credit program, please call the Arizona Department of Revenue at 602.255.3381 or 800.352.4090 or visit

I sit here reflecting upon my life’s battles, and I can’t begin to thank Aunt Vera enough for what a wonderful life she has given me here at Sunshine Acres. I once was a child who had nothing – living under bridges, getting beaten and panhandling to survive. Because of Sunshine Acres, today I am a man full of love and happiness.
Sunshine Acres is not a tax consultant and, as with all financial matters , recommends our donors contact a qualified tax professional for expert advice.