Arizona Foster Care Tax Credit - Donate & Reduce Your 2026

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  1. Click ‘Get Form’ to open the Arizona Foster Care Tax Credit form in the editor.
  2. Begin by entering your name and Social Security Number as shown on your tax return. If filing jointly, include your spouse’s information as well.
  3. In Part 1, list your cash contributions made between January 1, 2021, and December 31, 2021. For each contribution, provide the date, charity code, charity name, and amount contributed.
  4. If you contributed to more than three charities, complete the Continuation Sheet provided in the form and include it with your submission.
  5. Proceed to Part 2 to calculate any available credit carryover from previous years. Fill in the taxable year, original credit amount, and previously used amounts.
  6. Finally, in Part 3, sum up your current year’s credit and any carryover credits to determine your total available credit for this tax year.

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Does your child meet the Internal Revenue Services (IRS) definition of a foster child? ing to the IRS, a foster child is someone who is placed with you by judgment, court order or an authorized placement agency (state or local government organization).
If a foster parent receives taxable payments, the agency issues a Form W-2 or 1099- NEC to both the foster parent and IRS. The income must be reported on the tax return.
Foster Care Payments Generally, payments you receive from the state or other eligible entity for providing care in your home to a foster child, perhaps your grandchild, are considered support for that child. These payments are not included in your income for federal tax purposes.
Despite the assumption that most federal dollars are restricted to foster care placements, in fact total federal dollars spent on foster care maintenance payments (for foster parents and facilities) total just under $1.3 billion or ten percent of total federal spending.
Frequently Asked Questions. What is the Arizona Charitable Tax Credit? Arizona allows you to take a dollar-for-dollar credit on your state taxes when you donate up to $470 for single filers, or $938 for married couples filing jointly to a qualified organization.

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The Arizona Qualified Foster Care Tax Credit allows you to make a charitable contribution to organizations like Child Crisis Arizona and receive a dollar-for-dollar tax credit against your Arizona state taxes.
Generally, foster care payments are considered reimbursements and not taxable income. However, its important to distinguish between what counts as reimbursement and other types of payments: Foster care stipends (for regular expenses like food, housing, and clothing) are not taxable.
There is a basic daily foster home rate paid on behalf of each foster child placed in a licensed foster home. The basic rate is between $19.68/day/child and $27.15/day/child, depending upon the age of the child.

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