Arizona School Tax Credit

Skull Valley School

Arizona School Tax Credit

ARS 43-1089.01

 

You can reduce your tax liability and help

support extra-curricular activities.  Skull Valley School uses tax credit monies to fund educational field trips and the students’ garden club.

 

Donate up to $400 and receive a

TAX CREDIT!

Yes! A Tax Credit, not a Deduction.

 

Send your check to:  Skull Valley School

P.O. Box 127

Skull Valley, AZ 86338

A receipt will be mailed to you immediately for your tax records.

 

An opportunity to DECIDE where some of YOUR Arizona State Income Tax is spent!

 

Help the children of the

Skull Valley Community and

yourself TODAY!

 

All donations need to be postmarked no later than

December 31st

 

See below for details.  Thank you for your help!

The School Tax Credit

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Arizona Revised Statute

43-1089.01

 

This statute allows individual taxpayers to receive a tax credit up to $400 for fees paid directly to school districts in Arizona for the support of extracurricular activities beginning January 1, 1998.

 

Extracurricular Activity Defined

An extracurricular activity is defined as any school sponsored activity that requires enrolled students to pay a fee in order to participate.  Generally, all educational or recreational activities that are OPTIONAL, NON-CREDIT, AND THAT SUPPLEMENT THE EDUCATIONAL PROGRAM OF THE SCHOOL are considered to be extracurricular.


Answers to Common Questions

Must a taxpayer have a child enrolled in a public school in order to claim the tax credit?

No.  The statute defines a taxpayer as any person subject to the tax and a person as an individual.  Therefore, a taxpayer does not need to have a child enrolled in school to claim the credit.

Is the tax credit available to corporations?

No. The credit is NOT available to regular corporations and CANNOT be passed along to the partners, shareholders, or members of Partnerships, Corporations, or Limited Liability Corporations.  However, contributions from businesses are welcome.  Such contributions are deductible, although they cannot be used to claim a tax credit.

May a taxpayer receive a refund of the tax credit?

No. The tax credit may only be used to the extent they reduce tax liability to zero.  Any unused amount may be carried forward for up to the next five taxable years.

Are two married taxpayers filing a joint return both eligible to claim the maximum credit?

No. The statute allows $400 maximum tax credit for taxpayers filing jointly.

When can I make the payment to the school?

To receive the tax credit, the payment must be made during the current tax year (January to December). 

What is the difference between a tax credit and a deduction?

When a taxpayer claims a deduction, that amount is not subject to tax.  This saves the taxpayer the tax that would have been charged for the amount of the deduction.  A tax credit actually replaces a portion of the tax you are already subject to.  If your Arizona State Tax is $500, you have the option of paying the school $400 and the state $100, thereby choosing exactly where a portion of your tax money is spent.

Your contribution gets your tax money where it needs to go:  To the kids!

Contributions that are eligible for a tax credit are donated directly to Skull Valley School, not to the state or even to the school district.  The funds are not subject to the revenue control limit that prevents schools from spending more than a fixed amount for programs.  Additional funding from tax credit contributions will allow children to participate in more activities.

It’s this easy!

If you would like to support extra-curricular activities like field trips and garden club, simply write a check to Skull Valley School and mail or deliver it to the address on the other side of this paper.  The school will provide you with a receipt verifying your contribution.

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