Tax Credits
Help finance your child's education!
Many of the parents have asked me about $400 tax credit that is offered by the state of Arizona. Here is a list of frequently asked questions concerning the credit.
How does the $400 tax credit work?
- Anyone with or without children, married or single, is eligible for this unprecedented state tax credit.
- The $400 maximum state tax credit is available for taxpayers who are married and filing jointly. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only $100.
- For a single individual or a head of household, the tax credit is $200.
- A state tax credit will allow you to reduce the amount of your tax liability to the state or increase your refund from the state. If you donate the maximum $400, your Arizona tax bill would be $400 less or your refund would be $400 more.
- You may donate less than $400 and be eligible to receive the state tax credit in the amount of your donation. The amount you donate (up to $400) will be the amount you may claim as a state tax credit.
- You may split your $400 donation among more than one public school, but will still qualify for a maximum state credit of $400.
- Your donation also reduces your taxable income to the federal government, thereby reducing your tax burden to the federal government usually by 1/3 of the donation amount.
Which activities does the tax credit cover?
Here is a list of activities that the tax donation will help to support: Band, Art, Music/Chorus, extracurricular field trips, athletics, before and after school clubs, and Drama club.
I have children in two different schools, how can the tax donation work for both of them?
Your tax donation can be split between as many schools as you would like. Just remember, that your combined total donation amount is a maximum $400.
Do I have a say as to where the donation will go?
You most certainly do. When you are ready to give your donation, you will fill out a tax donation form. On this form will be a space for you to label what area(s) you would like to receive the money. The donation may be split between two activities (i.e. band and drama club) but the maximum combined total donation is $400.
Are parents the only individuals that are allowed to participate in this activity?
Every Arizona state resident that pays Arizona state taxes is eligible to participate. So grandparents, aunts, uncles, and friends can also contribute to your child's school activities.
Where can I get the form for the $400 tax donation?
If you are interested in the tax donation, please pick up the form from the school office or download it from the band website. Make sure to designate you want the money to go to the band program!
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