ARIZONA
Sow into us and reap a tax harvest!
Charitable Tax Credit:
Credit for Contributions to qualifying Charitable Organizations.
The maximum QCO credit donation amount for 2025:$495 single, married filing separate or head of household; $987 married filing joint.
Arizona law allows QCO donations made during 2025 or donations made from January 1, 2026 through April 15, 2026 to be claimed on the 2025 Arizona income tax return. The tax credit is claimed on Form 321.
NEW! FEDERAL Tax Benefits:
Charitable Gift Annuity Announcements
The SECURE 2.0 Act of 2022, which was included in the $1.7 trillion spending bill signed by President Biden on December 29, has a small gift for charities and individuals over the age 70 1/2 who are willing to transfer up to $50,000 to a charitable remainder trust or into a charitable annuity arrangement.
SECURE 2.0 permits a taxpayer to make a one-time $50,000 distribution directly from an IRA or IRAs to a charitable remainder trust or a charitable annuity and make a one-time election to treat the contributions as if they were qualified charitable distributions made directly to a charitable entity.
As a bonus, the American Council on Gift Annuities just announced their rates are increasing. On November 21, 2022, the American Council on Gift Annuities Board of Directors approved an increase in the suggested maximum payout rate schedules for charitable gift annuities.
In general, the suggested maximum payout rates increased by approximately 0.4 to 0.6 percentage points, based on the annuitant's age. The annual fixed payment has increased by $80 to $120 on a $20,000 gift annuity. The new ACGA suggested maximum charitable gift annuity rates became effective on January 1, 2023.
United Way of Tucson and Southern Arizona has staff who can help you with your IRA rollover to a charitable remainder trust or a charitable annuity. Please contact our Chief Development Officer, Jeff Petrovic, at jpetrovic@unitedwaytucson.org for more information.