You must complete and include Form 301 with the appropriate individual credit form(s) (any form that starts with 3) with your return.
It's important to determine your eligibility for tax credits before you file.
- Income tax credits reduce tax liability.
- Tax credits are either refundable or non-refundable.
- Although non-refundable tax credits can never exceed a taxpayer’s tax liability, the majority of non-refundable tax credits allow the unused amounts to be carried forward to future years.
Family Income Tax Credit
You may claim this credit if your income does not exceed the maximum income allowed for your filing status. The family income tax credit will only reduce your tax and cannot be refunded.
E-file software will let you know if you are eligible and will figure the credit for you.
Increased Excise Taxes
As for the increased excise tax, Arizona law provides qualified taxpayers a state income tax credit to be applied against increased excise taxes imposed by county governments. The credit is available each year and depends on the taxpayer’s income. The goal of the credit is to provide disabled and low-income individuals with financial assistance in the form of tax relief.
Please note: Arizona excise taxes are imposed by all counties except Pima County. It provides revenue to pay for county services, including public transportation and county facilities.
The amount of the credit is $25 for each resident of Arizona and for whom a personal or dependent exemption is allowed on the Arizona return. For example, if taxpayers are married filing jointly, they may claim a credit of $25 for themselves, their spouse, and $25 each for up to two dependents. Single taxpayers may claim a credit of $25 for themselves and $25 each for up to three dependents. This credit cannot exceed $100 per household.
To determine if an individual or dependent qualifies for the increased excise tax credit, please review the instructions for the Arizona Form 140 series and complete the worksheet. Individuals can claim the credit even if they do not have to file an Arizona return. Individuals filing an income tax return using Form 140, Form 140A, Form 140EZ or Form 140PY can claim this credit by completing the worksheet on the instructions of these forms.
Taxpayers can also use Form 140PTC to claim the credit for increase excise tax and the property tax credit. Individuals not required to file an Arizona income tax return, and whom do not qualify for the property tax credit, can claim the increased excise tax credit by filing Arizona Form 140ET.
Property Tax Credit
As for the property tax credit, individuals may qualify for a credit if they were residents of Arizona the entire year and meet all of the following criteria:
- Paid property taxes or rent on a main home in Arizona during the tax year.
- Were 65 or older by December 31 of the tax year or received Title 16 Supplemental Security Income.
- Earned a total household income less than $3,751 and the taxpayer lived alone, or the total household income was less than $5,501.
Taxpayers should note that property tax claims must be filed on or before the due date, including any extensions, for the year in which the credit is being claimed. They can request an extension of up to six months when filing Form 140PTC. Please read the instructions on the form.
Taxpayers can also use Form 140PTC to claim the credit for increase excise tax and the property tax credit.
If you have questions on this form, contact [email protected]. The Property Tax division cannot assist you with this credit.
Public School Tax Credit and the School Tuition Tax Credit
Taxpayers can claim both the public school tax credit and the school tuition tax credit. For more information, see Arizona Department of Revenue Pub 707, School Tax Credits. Please note: a single individual who contributed to a school tuition organization cannot carry over any amount to the next tax year because of limitations.
Additionally, individuals may take the public school tax credit for contributions made or fees paid to a public school in support of extracurricular activities or charter education. This includes amounts paid to a charter school.
Credit for Contributions to Qualifying Charitable Organizations
This individual income tax credit is available for contributions to Qualifying Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability. The tax credit is claimed on Form 321.
Credit for Contributions to Qualifying Foster Care Charitable Organizations
This individual income tax credit is available for contributions to Qualifying Foster Care Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability, and provide immediate basic needs to at least 200 qualifying individuals in the foster care system. The tax credit is claimed on Form 352.
This is not an exhaustive list of tax credits. To see other tax credits, view the Tax Credit Form page.