MPHS Pride Boosters
Arizona Tax Credit Program
Introduction
The Arizona Tax Credit Program (A.R.S. 43-1089.01) allows any Arizona taxpayer to donate up to $400* to a school of their choice in support of extracurricular programs and get their entire donation back in the form of a tax credit. Contributions must be postmarked by December 31 of the year to which you want to apply your tax credit.
Contributor's may donate on behalf of a named student. Check with the School Program Director to assure any unused tax credit dollars tied to a student may roll over and be used for the following year!
For more tax credit information call the Community Relations Department at (480) 345-3716.
*Individuals and couples filing jointly may take advantage of this tax credit. A maximum of $200 can be deducted per individual tax return, or couples filing a joint return may deduct a maximum of $400.
CONTACT YOUR TAX ADVISOR FOR MORE INFORMATION.
Frequently Asked Questions
Q: What does my donation pay for?
A: School tax credit donations help pay extracurricular activity fees. Funds can apply to sports, arts and music programs, and most after-school student clubs.
Q: How much can I donate?
A: A person filing their tax return individually may contribute up to $200. Married couples filing jointly may contribute up to $400.
Q: Is this tax credit only available to parents with students in school?
A: No, this tax credit is available to any Arizona taxpayer, regardless of whether or not they have children in school.
Q: I have been donating money to schools for years, what’s the difference?
A: Contributions to schools have always been tax deductible. A tax deduction allows you to subtract the amount of a contribution from the amount of your taxable income. The new law allows a tax credit, which is subtracted from the amount of taxes you owe.
Q: What is the difference between a tax credit and tax deduction?
A: A tax credit is a dollar-for-dollar reduction in the actual tax owed. A tax deduction only reduces total taxable income from which the taxed owed is calculated.
Q: Can I choose which extra curricular activities my money should benefit?
A: Yes, you can indicate areas of allocation, such as a student club or activity. Designation must be made at the time of donation.
Q: Are all Arizona schools participating?
A: No, only public schools that charge fees for extracurricular activities are eligible for the tax credit. Tempe Union implemented a $1 extracurricular Activity Fee, effective September 10, 1998. In June 2002, the district began charging additional fees for some extracurricular activities. These fees qualify for the tax credit program.
Q: What do I submit with my taxes as proof of this contribution?
A: You must submit the receipt from the school. Once you have given your contribution to the school representative, a receipt will be provided to you for tax purposes. If you mail in the completed tax credit deposit form with your contribution, a receipt will be mailed to you.
Q: When can I participate?
A: Right Now! All you need to do is fill in the Tax Credit Donation Form and write a check made payable to the school of your choice. Mail the form and your check to the attention of the Bookstore Manager at the high school you’ve chosen. It must be postmarked by December 31 to take advantage of the tax credit for this year.
5. The credit is limited to $200 per individual tax return and $400 if the credit is claimed on a tax return of a married couple