How is a tax credit different from a tax deduction?
A tax deduction lowers your taxable income. A tax credit directly lowers the amount of taxes you owe - dollar for dollar. That means a $100 donation reduces your state tax bill by $100.
What is the Arizona Foster Care Tax Credit?
It’s a state program that lets you support children in foster care at no net cost to you. When you donate to a Qualifying Foster Care Charitable Organization (QFCO) like The Foster Alliance, you receive a dollar-for-dollar credit on your Arizona state income taxes.
