Telesis Tax Credit InformationATTENTION PARENTS, FRIENDS, & FAMILY OF TELESIS PREPARATORY ACADEMY
ARIZONA TAX CREDIT
DONATING TO SCHOOL AT NO COST TO YOU
As a taxpayer, you initiate a school contribution, and Arizona pays the bill? What a deal? This article, in question and answer format, will give you the fine points on how the tax credit works, and how you can donate money to a school's activities, which are out of the normal day at no cost to you.
Here are the clubs and extracurricular activities for students (listed in alphabetical order) that can be chosen to designate your tax credit contribution to. Sports, music, art, and field trips are all included separately on the tax credit form, therefore, not listed here.
Academy Kiwanis Key Club
Character Councils
Character Education Culture Club
Craft Club
National Honor Society
National Junior Honor Society
Student Council
What is this tax credit I’m hearing about? Is this a tax deduction?
The tax credit means that you get the amount you contribute deducted from your Arizona State tax bill for last year's filing, providing that you have a tax liability that is in excess of your contribution. The amount of your tax bill will be reduced by the amount of your contribution. If you have an amount due, that amount will be reduced by the amount of your contribution; if you are entitled to a refund, your refund will be increased by the amount of your contribution. We will give you an official tax credit receipt that you will attach to your State return as evidence of your contribution. In essence, you initiate a contribution that is paid for by the Arizona State treasury. As a taxpayer bonus, you may also list your contribution as a charitable contribution that is paid for by the Arizona State treasury. As a taxpayer bonus, you may also list your contribution as a charitable contribution on your federal form if you file the “the long form.”
How much money may I contribute for the tax credit?
A married couple filing jointly may contribute any amount up to a maximum of $400 during the calendar year. A person filing as a single may also contribute any amount up to a maximum of $200 for the year. Worthy of note is the fact that the tax credit is based on a calendar year, not a school year. Contributions for this year's tax credit should be made by the last day before winter break, since the schools will be closed for winter break for the remainder of the calendar year. However, contributions can be made throughout the winter break by using the green drop box outside the school through December 31st. Anyone may contribute for a tax credit; having a child in a school is not a requirement. Grandparents might be interested in this, also.
What if I have students in two or more schools? What are the rules for contributing?
The rules above apply for the maximum in family contribution. If you choose to make contributions at multiple schools, that’s fine, but the total contributed to all schools selected may not exceed the maximum of $400. You will receive a receipt at each school where you contribute.
How and when do I make the contribution?
Contributions may be made to a specific school at the school office at any time the school office is open. Just come in, see the school secretary, make your contribution, get your official receipt, and you’re finished. Just be sure your contribution is made during calendar year before December 31st.
Will my contribution be used at the school I specify, or will contributions be “pooled” among all district schools or go to a general fund for all schools in the state?
Contributions made at a school will stay at that school and be used to benefit that school’s extracurricular programs. Regulations prohibit contributions given to a specific school to be “pooled” to a larger fund.
How will my contribution be used at the school?
The law regarding the tax credit is very specific that donations will be used for extracurricular school activities. Extracurricular is defined as any school-sponsored activity, which takes place outside the school day. This includes after-school intramural activities in which students pay a fee such as clubs, fine arts performances, etc. Overnight field trips may be funded by tax credit donations, but field trips that schools take during the school day may not be paid for with tax credit money; those trips are considered “co-curricular” rather than extracurricular.
What’s the catch? Having the State of Arizona give me a tax credit for a contribution I make to a school seems too good to be true.
There is no catch. Your school contribution will cost you absolutely nothing out of pocket. People who pay Arizona tax on their income in excess of the amount they choose to contribute are really initiating a contribution to the school from the State treasury. The only inconvenience is that you must make your contribution by the end of December, and you will not have your tax credit (reduced tax bill or tax refund) until you file your Arizona State tax return for that year.
This article in part was taken from several other schools.