What is a State Tax Credit?

Your state tax liability is the total amount of tax you owe the state on your income. It is a percentage of your taxable income. A state tax credit lowers your tax liability. Unlike deductions, which reduce your taxable income, state tax credits reduce your state tax liability by the amount you donate.

For example, If your income is $100,000, your Arizona state tax liability may be around $3,300. If you make a $1,000 state tax credit donation, your tax liability is reduced to $2,300. If you choose, you could donate your entire tax liability by taking multiple tax credits (see below) and bring your tax liability to ZERO ($0).

State tax credits are taken when you file your Arizona personal tax return, resulting in either less taxes owed or a larger refund.

Qualifying Charitable Organizations

Qualifying Charitable Organizations (QCO’s) are certified by the Arizona Department of Revenue to receive contributions eligible for the tax credit. This certification only pertains to the Arizona tax credit program. This program does not apply to general licensing, operations, or the deductibility of donations to charitable organizations.

The Mission of Mercy is a certified QCO! Your gift to the Mission of Mercy Health Fund will help a family without insurance AND qualify for a state TAX CREDIT. This is more than a deduction – it’s a dollar-for-dollar credit!

How to Make a State Tax Credit Donation to Mission of Mercy:

  1. Make a donation (online, mail in a check or call us) to the Mission of Mercy Health Fund.
  2. Maintain a receipt of your gift from Mission of Mercy, to provide a copy with your tax return.
  3. Complete the Arizona Form 321 for gifts to QCOs use our QCO Code: 20941
  4. Calculate your individual tax return, subtracting your tax credits from your tax liability, in order to reduce your Arizona state tax balance. Include your Arizona Form 321 with this tax return.

Before making any tax credit donation please consult with your tax professional.

Tax credit contributions can be made up to April 15, 2020 for tax year 2019.


4 Facts You Should Know Arizona Charitable Tax Credit 

  1. You get your money back! Tax credits reduce your taxes dollar-for-dollar as a credit (not a deduction.)
  2. Maximum Amount Doubled – Couples filing jointly can now give any amount up to the $800 maximum (individuals can give up to $400). Any donation amount up to the maximum can be used as a credit.
  3. Everyone Qualifies: No need to itemize!Everyone who files income taxes in Arizona can claim the credit, simply by making a contribution for Mission of Mercy. Use Qualifying Charity Organization (QCO) Code: 20941
  4. Take multiple tax credits: In the same tax year, you may take advantage of multiple tax credits, including the Charitable Tax Credit, the Public School Tax Credit, the Private School Tuition Credit, and the Foster Care Credit. Each are separate credits.

Your Tax Credit gift will:

  • $800 gift provides a 6-week chronic disease management course for 10 patients with diabetes.
  • $600 gift will buy 1 month of fuel to power our mobile medical units.
  • $400 gift provides inhalers for 6 patients with asthma.
  • $200 gift gives 40 patients with high blood pressure medication for 1 month.
  • $100 gift pays for 1 doctor visit, including medications, diagnostic labs, x-ray and 1:1 patient counseling. 
        3 Ways to Give 

    Write a check to Mission of Mercy Health Fund.  You must include the full name: Mission of Mercy Health Fund.
    Mail to: 360 E Coronado Rd. Ste 160, Phoenix, AZ 85004.

  3. PHONE

    Call Us Today at 602-861-2233 to give with your credit card.


Please visit Arizona Department of Revenue website to download appropriate forms, instructions and other information regarding QCO’s and tax credits.