DONATE TODAY
Tax Credit vs. Tax Deduction: What’s the Difference?
Tax Deduction
- A deduction lowers the income the IRS or state uses to calculate your taxes.
- Your actual savings depend on your tax bracket.
- Example: If you earn $50,000 and donate $1,000, your taxable income becomes $49,000. At a 22% tax rate, that saves you $220.
Tax Credit
- A credit lowers your tax bill dollar-for-dollar.
- Much stronger than a deduction.
- Example: If you owe $500 in Arizona state taxes and donate $500 to a QFCO, your tax bill becomes $0.
- For 2025 donations, you can claim up to $618 (single) or $1,234 (married filing jointly) in QFCO tax credits.
In short:
- Deduction = partial savings (depends on your tax bracket).
- Tax Credit = full savings (every dollar reduces your tax bill).
Thanks to the QFCO Tax Credit, you can donate up to $1,234 and get it right back on your tax return:
Step 1
Donate to Voices for CASA Children to help children in foster care.
Step 2
File your taxes and claim the QFCO tax credit. (in addition to other tax credits)
Step 3
Recieve your tax credit! ($626 for single file or $1,251 if married and filing jointly)
QFCO
QFCO stands for Qualifying Foster Care Charitable Organization.
In Arizona, the Department of Revenue has certified certain nonprofits that serve children living in foster care as QFCO. When a taxpayer donates to a QFCO, they can claim the Arizona Foster Care Charitable Tax Credit on their state taxes. Donations to a QFCO are eligible for a dollar-for-dollar tax credit (not just a deduction).
Tax payers can claim QFCO tax credits in addition to other Arizona tax credits such as Qualified Charitable Organizations (QCO), schools, etc.
This means that you can donate the full QFCO amount ($618 if single or $1,234 if married and filing jointly for 2025) to Voices for CASA Children in addition to any QCO donation and you’d receive an Arizona Tax Credit for BOTH the QFCO and QCO donations!
Our QFCO Code is 10010.
Arizona Tax Credit Contribution
Arizona tax law provides a foster care tax credit for contributions made to Qualifying Foster Care Charitable Organizations, such as Voices for CASA Children. You can earn dollar-for-dollar tax credit and potentially lower the amount of state tax you owe. One-time and recurring options are available!
The maximum QFCO credit donation amount for 2025 is $618 for single, married filing separate or head of household; $1,234 for married filing joint.
The maximum QFCO credit donation amount for 2026 is $632 for single, married filing separate or head of household; $1,262 for married filing joint.
More Information on QFCO Amounts
Voices for CASA Children QFCO Code: 10010
Should you have any questions please contact us at info@voicesforcasachildren.
Voices for CASA Children does not provide tax advice. The availability and amount of tax deductions or credits may vary depending on your location, filing status, and other individual factors. Please consult your tax advisor.
