FAQ
Q. What
is a Tax Credit?
A. A Tax Credit is a dollar-for-dollar reduction in your Arizona income
tax liability. In simple
language, you subtract the amount of your contribution to a public
school (or a specific program within a public school) as a direct credit
against your tax liability.
For example, if you are married and filing jointly and owe $1,000 in
state income taxes, when you donate $400 to the public school or program
within the school of your choice, you receive a credit for that exact
donation amount on your Arizona income tax return.
As a result, in this example, you would now owe $600, and not the
original $1,000.
Q. Is
it a Tax Deduction?
A. No it is not merely a tax deduction.
You receive a Tax Credit on your Arizona income tax return for
you contribution. As a
dollar-for-dollar reduction in your tax obligation, a tax credit is much
more valuable to you than a tax deduction.
Q. How
much can I contribute?
A.
Single individuals, or
married couples filing separately, can receive a dollar-for-dollar
credit of up to $200.
Married couples filing
a joint return can receive a credit of up to
$400.
Q. Why
should I give money to a school?
A. With limited school funding, students do not always have the
opportunity to participate in a wide variety of extracurricular
activities we often presume are budgeted for.
School Tax Credit contributions can provide TUSD students with
opportunities such as after-school programs, tutoring, arts, music, and
after-school sports. Simply
put, tax credit contributions make possible a wide variety of learning
and athletic opportunities that our students might not otherwise have.
Q. Who
chooses which school will receive my Tax Credit?
A. You do, by making the check payable to the school of your choice.
You can choose a school based on any criteria you set forth and
you can choose a specific program within a school and be assured that
program will receive your tax credit.
Q. Do I
have to donate the full $200 or $400 all at once?
A. No, you can choose to donate up to the
$200 or $400 limit in installments during
the calendar year or you can donate it at one time.
There is no Tax Credit too small and any dollar amount is
appreciated by the school and the programs within.
You can also donate to multiple schools and programs up to your
tax credit limit by splitting up your Tax Credit.
Q. When
is the deadline for the tax credit?
A. Your contribution must be submitted online or postmarked by December
31 to count for the current tax year.
Q. Do I
have to itemize my deductions if I participate in the tax credit
program?
A. No. You do not have to
itemize deductions in order to take advantage of the Arizona Tax Credit
for your contribution.
However, in order to receive the tax credit you must file Arizona Form
140 (the longer tax return form).
When filling out your Arizona State taxes, use Form 322 to deduct
your contribution.
Q. Can
I use my credit card to make a contribution?
A. Yes. TUSD accepts credit card payments through their secure Online Tax Credit Form. Note that credit card payments can only be made online, not at the individual school. However, the school and program can still be specified.
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