The QCO Tax Credit lets you redirect part of your Arizona state taxes to a charity you choose. When you donate to a certified Qualifying Charitable Organization (QCO), you receive a dollar-for-dollar credit against the Arizona income tax you owe. You can support youth in Northern Arizona by directing your tax credit to Big Brothers Big Sisters of Flagstaff!

Yes. The QCO credit is a credit on your Arizona income tax, not an itemized deduction, so you don’t need to itemize to claim it.

Yes. Arizona tax credits can be used together, and each has its own annual limit. In addition to the QCO credit, you may be able to claim:The Arizona Public School Tax CreditThe Qualified Tuition Organization Tax CreditThe Qualifying Foster Care Organization Tax Credit

The 2026 AZ QCO Tax Credit Limits are: $506 for single, married filing separately, or head-of-household filers$1,009 for married filing jointly

No. You can donate any amount up to the maximum for your filing status.

A deduction lowers the income you’re taxed on. A credit lowers your tax bill directly, so it’s worth more.Arizona has a flat 2.5% income tax. Here’s an example with $50,000 of taxable income, where your tax liability is $1,250:$500 deduction: taxable income drops to $49,500, so your tax liability is reduced by just $12.50, to $1,237.50.$500 credit: your tax liability is reduced by the full $500, to $750.

If your employer already withheld more than you owe, your credit increases your refund.Example: Your employer withheld $2,000 and your tax liability is $1,250, so your refund would be $750 ($2,000 withheld - $1,250 tax liability=$750 refund). If you donate $500 to a QCO, your tax liability drops to $750 ($1,250 original tax liability - $500 tax credit = $750 new tax liability) and your refund grows to $1,250 ($2,000 withheld − $750 new tax liability= $1,250 refund).

Your credit can’t exceed your Arizona tax for the year, and donations above the annual limit for your filing status don’t qualify for the credit. The Liability Planning Tool can help you choose an amount.

Yes. If your credit is larger than your tax liability for the year, you can carry the unused portion forward for up to five consecutive tax years.Carryover doesn’t count against the annual limit in subsequent years, so you can use past carryover plus a new donation credit in the same year, as long as your tax liability is high enough to absorb both.NOTE: If you donate more than the annual limit for a specific tax credit, amounts exceeding the limit are not eligible for carry-forward.

No. Only monetary donations qualify, and the donation can’t be in exchange for goods or services. For example, if you play in a charity golf tournament, your registration fee doesn’t count toward the credit.

It’s easy whether you use TurboTax, paper forms, or a tax preparer. Enter our QCO code, 20690, on Arizona Form 321. Form 321 for 2026 will be available here on January 1, 2027.

Anytime between January 1, 2026 and April 15, 2027. You can donate while you’re filing your 2026 return, and some people prefer that because it shortens the wait for their refund.

Use our Tax Calculator to estimate your Arizona tax liability.