When you make a donation to MeHug, you can receive a dollar-for-dollar tax credit on your Arizona state tax file. If you are a single taxpayer, you can receive a charitable tax credit up to $400. Couples filing jointly can receive up to $800 credit on their Arizona State income tax return. MeHug is a 501(c)(3) organization that qualifies for the Arizona Charitable Tax Credit.It is a direct dollar-for-dollar credit back to you.

MeHug is a Qualifying Charitable Organization and equally important is certified on the Department of Revenue’s website for Donations made to Qualifying Charitable Organizations. Your Arizona Charitable Tax Credit Donation to MeHug can be included in your Federal Tax Deductions in addition to the Arizona Charitable Tax Credit. MeHug Qualifying Organization Code (QCO) is 22301. Please consult a qualified tax advisory for personal tax advice.

• Donations must be made by individuals (corporations, foundations, partnerships, do not qualify). If you have an LLC, the credit will benefit the owners of the company on their personal tax return.
• Donations must be made in cash (property donations do not quality, nor do in-kind donations such as toys, books and services).
• There are four (4) steps to document your donation and claim your tax credits.
1. Donate to a certified charitable organization (QCO 22301), such as a 501(c)(3) organization like MeHug.
2. Maintain a receipt of your gift from the charity, in order to provide a copy with your tax.
3. Complete the relevant tax form to claim one or more credits for your gift(s): Arizona Form 321 for gifts to QCOs.
4. Calculate your individual tax return (e.g. Arizona Form 140, 140NR, 140PY or 140X), subtracting your tax credits from your tax liability, in order to reduce your Arizona state tax Include either Arizona Form 321 with this return.
For example, if a single individual owes $2000 in taxes but donates $400 to MeHug, his tax liability is reduced to $1600.
A single taxpayer who wants to contribute $400 to a QCO and claim the maximum allowable credit may do so; likewise, a taxpayer can make a $5 donation, record this gift on Arizona Form 321, and receive a tax credit in the amount of $5 from the state of Arizona.