FAQs:
What is a tax credit?
This is a tax credit, not a tax deduction. A tax credit is a dollar-for-dollar reduction in the actual tax owed. For example, if you owe $900 in state income taxes and you donate $400 to a public school for extracurricular activities, you may subtract the $400 from your tax bill and pay the state just $500.
What is an extracurricular activity?
Extracurricular activity means any optional, non-credit educational or recreational activity that supplements the education program of the school. Activities such as tutoring, sports, visual and performing arts, special programs, field trips, character education, clubs or outdoor education can be funded with tax credit money. Extracurricular activities help children develop qualities such as academic skills, leadership, team play and cooperation as well as provide safe, supervised activities after school hours.
Who is eligible?
This tax credit is available to all Arizona individual taxpayers regardless of whether or not they have children in school. An individual can contribute and receive a tax credit for any amount up to $200, or a couple filing jointly can contribute up to $400.
Does all of my money go to extracurricular activities?
Yes, 100 percent of your donation goes directly to the schools for extracurricular activities that benefit students by enriching campus life and learning. None of the money is used for overhead.
Can I designate where I want my money to go?
Yes, you can say where you want your donation to go. You can designate it for a particular extracurricular activity or allow the school to choose an area of greatest need.
Do I have to donate the full $200 or $400?
No, you may donate any amount up to your $200 or $400 limit. You may donate at one time or in installments during the calendar year.
Do I have to live within the school district?
No, any individual who pays Arizona State income tax can donate. Anyone with or without children, married or single, can take advantage of this tax credit.