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ARIZONA STATE TAX CREDIT DEDUCTIONS THAT BENEFIT SCHOOLS.......
THERE ARE TWO.....YOU CAN PARTICIPATE IN BOTH...
CREDIT FOR CONTRIBUTIONS MADE OR FEES PAID TO A PUBLIC SCHOOL
An individual may claim a 100%, dollar for dollar, state tax credit for making contributions or paying fees to a public school for support of extra curricular activities or character education programs. This is the simplest way to contribute and to direct how your tax dollars will be spent. It is a way that you can assure that your Arizona State tax dollars can go directly to support a public school in your neighborhood. Consider a contribution to our Coronado neighborhood school, Emerson Elementary, located at 10th Street and Palm Lane. This school community has been a real contributor to the neighborhood and offering facilities for our GCNA meetings for years and they deserve and have earned our support. An individual may also claim a credit for making a donation to a qualified school tuition organization for scholarships to private schools (see additional information on that below).
link to:
FOR THE ACTUAL LAW AND QUESTIONS ANSWERED
LINK TO EMERSON SCHOOL WEB SITE AND INFORMATION
ARE YOU READY TO CONTRIBUTE TO EMERSON ELEMENTARY SCHOOL...10TH STREET AND PALM LN
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ARIZONA INDIVIDUAL SCHOOL TUITION ORGANIZATION TAX CREDIT
Arizona’s Individual School Tuition Organization Tax Credit, commonly referred to as the private school tax credit, was established in 1997. Through the law, taxpayers may take a personal income tax credit for donations to School Tuition Organizations (STOs). The cap on credits is $500 for individual donors and $1,000 for married persons filing jointly.
The Arizona Private School Tuition Tax Credit Law, A. R. S. Section 43-1089, allows a married couple filing jointly to make a donation to the ACSTO up to $1000 in 2007 and receive a dollar-for-dollar tax credit against the taxpayer's Arizona state income tax. A single taxpayer is limited to $500. If the taxpayer has actual Arizona state income tax less than the maximum allowable, the available credit in a given year is limited to the actual tax. The law allows a carry forward for up to five years if a donation is made in excess of the actual state income tax due. Arizona State income tax forms 301 and 323 are used for claiming the credit.
The public school extracurricular activities tax credit of $400 for married couples filing jointly (see above portion on this page) may be taken in addition to the private school tuition tax credit. These donations should be made directly to the public (including charter) school of your choice.
From a October 2,2007 article in the Arizona Republic by Pat Kossan"Enacted in 1997, the tax-credit law was passed to increase the amount of donated scholarship money to help more parents send students to private and religious schools.
Critics have said it siphons off money from public schools and is an alternative to parents' receiving vouchers for private schools.
A coalition of mostly educators sued, and it passed legal muster.
To make a tax-credit donation, a taxpayer must send it to one of 56 School Tuition Organizations in Arizona, designating the money for a particular school or student but not a dependent.
The School Tuition Organization passes along the gift to an affiliated private school to fund a student and can keep 10 percent for administrative expenses."
A taxpayer may also be able to claim a federal deduction for the donation. The taxpayer should consult their tax advisor for specific tax advice.
At tax time, the tax payer files for a dollar-for-dollar credit off state income taxes. A taxpayer also deducts the amount off taxable income for federal taxes, but only if he or she itemizes and earmarks the gift to a School Tuition Organization or a school (but not a student). In that case, the taxpayer can get back more money than he or she donated, through a lower tax bill or higher refund. A $100 gift, for example, could return $1300 to a taxpayer who is in the 30 percent tax margin. While a tax payer can participate in both programs, this particular scenario applies only to this program and not to the Public School program listed below.
link to:
FOR ADDITIONAL INFORMATION
LOTS OF ADDITIONAL INFORMATION PROVIDED BY THE STATE.....
FOR THE ACTUAL LAW
Carol Crockett a resident of Coronado works for Xavier College Preparitory School,
information on the scholarship funding can be found HERE
or questions directed to: Michelle Schmitt '03/ Assistant Director of Development /The Xavier Fund/Xavier College Preparatory/4710 North Fifth Street/Phoenix, AZ 85012/mschmitt@xcp.org 602.240.3136
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Questions and Answers
regarding the public school donation program
Here are some frequently asked questions:
Q. What is a tax credit?
A. A tax credit is a dollar-for-dollar reduction in your Arizona income tax liability. In other words, you subtract the amount of your contribution to your child's school as a direct credit against the amount of tax liability. For example, suppose you are married and filing jointly and owe $1,000 in state income taxes. When you donate $400 to your community public school, you receive a credit for that exact amount on your Arizona income tax return. As a result, you will only owe the state $600 on your return.
Q. Is it a tax deduction?
A. No. You receive a tax credit on your Arizona income tax return for your contribution. A tax credit is much more valuable to you than a tax deduction.
Q. Who is eligible?
A. This tax credit is available to all Arizona individuals who pay state income taxes, regardless of whether or not they have children in school.
Q. Do I have to itemize?
A. No. You do not have to itemize deductions in order to take advantage of the Arizona tax credit for your contribution to your child’s school of your choice. However, in order to receive the tax credit you must file Arizona Form 140 (the longer tax return form).
Q. Why should I give money to a school?
A. With limited school funding, students do not always have the opportunity to participate in a wide variety of extracurricular activities. School tax credit donations can provide students with opportunities such as field trips, after-school programs, tutoring, arts and music education, and after-school sports. In addition the funds can help to pay for uniforms and equipment for various extracurricular activities. Simply put, tax credit donations make possible a wide variety of learning opportunities that our students might not otherwise have.
Q. Why should I participate?
A. This program allows you (rather than the Arizona legislature) to control how your tax dollars are spent. You can direct a portion of your tax dollars directly to your school, where the money will be used to support a variety of beneficial programs for the students. Since all of your contribution will be returned to you when you file your taxes (up to the maximum annual limitation), there is no out-of-pocket expense to you for participating.
Q. What does the school do with the money?
A. Your tax credit donations can be used, for example, for extracurricular activities such as high school athletics and performing and fine arts, field trips, enrichment programs, student clubs or other education or recreational activities which supplement the school's academic programs.
Q. Can I designate what the money is spent on?
A. Yes. You have the option of designating the specific extracurricular activity your donation will support.
Q. Who chooses which school will receive my donation?
A. You do, by making the check payable to the school of your choice. You can choose a school based on student need, grade levels, location, or personal preference.
Q. Do I have to donate the full $200 or $400 all at once?
A. No, you can choose to donate up to the $200 or $400 limit in installments during the calendar year or you can donate it at one time. If you do not wish to donate the full amount, any amount you choose would be valuable to our students and appreciated by our schools. Just make sure the check(s) are brought to the school, or postmarked if mailed, no later than December 31. If you use the online Tax Credit form, be sure to submit it before midnight, December 31.
Q. When is the deadline?
A. Your contribution must be submitted online or delivered or mailed to school by December 31.
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The Coronado Neighborhood has given itself a challenge
E-Hood Coronado, an online information resource for the Greater Coronado Neighborhood had teamed with Central City Discuss a online list serve, to raise $20,000 for the Emerson Elementary School. The vehicle for this fundraiser is the Arizona State Income tax credit. For single taxpayers or heads of households, the credit cannot exceed $200. For married taxpayers that file a joint return, the credit cannot exceed $400. This program allows a 100% dollar for dollar credit for making contributions or paying fees to a public school for support of extra curricular activities or character education programs. A character education program must include instruction in the definition and application of at least six of the following character traits: truthfulness, responsibility, compassion, diligence, sincerely, trustworthiness, respect, attentiveness, obedience, orderliness, forgiveness and virtue. Extracurricular activities mean school sponsored activities that require enrolled students to pay a fee in order to participate. Such activities may include, but are not limited to, use of band uniforms, use of equipment or uniforms for varsity athletics, etc…..generally, any educational or recreational activities that supplement the educational program of the school are considered to be extracurricular activities. You can contribute $400/$200 to Emerson Elementary today and get 100% back when you file your state income taxes (as long as you have paid that much in state taxes during the year)! The lowest tax rate for state income tax is 2.87% ($0-$10,000) on every dollar of income earned so most individuals would be well within the limit of a full contribution. If you itemize your federal deductions, you can also deduct the $400/$200 contribution from your federal taxes and make money on the deal!Emerson School is located within the Coronado Neighborhood whose boundaries are 7th Street to the 51 and Thomas to the I-10, and has been supportive of the neighborhood organization by providing meeting facilities and is a performing plus education school to the younger members of our community. This fund raising drive will allow taxpayers to directly have a say in how their tax dollars are spent. It is an excellent opportunity to give back to our neighborhood school and its hard working staff, some of what they have so generously provided to our community. Please find more information and printable forms HERE FOLLOW THE LINKS or stop by and visit Principal Garthanne deOcampo at the school on Palm Lane at 10th Street. You do not have to itemize your deductions to participate in this program. We only need 100 people in our neighborhood of 5000 households to participate to reach our goal. I am sure that the community spirit, involvement, and pride will put this within easy reach by the end of the year. This is a Holiday Gift you can give the neighborhood without any out of pocket cost……….just a redirecting of your tax dollars to the community you live in.I will have the necessary forms available at the General meeting on December the 6th 7PM at Emerson School.
Wayne Murray
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Phoenix Elementary School District #1
…where tradition and innovation merge to create the future.
Dear Friend of Emerson School:
With the close of the calendar year just a few months away, it is time to make sure we
have taken care of all our tax credits and donations for the year. As a friend of
Emerson School, we hope you will consider donating your Arizona Educational Tax
Credit to our school this year.
You probably know that Arizona state law enables you to receive a tax credit of up
to $200 ($400 if married filing jointly) when you make a donation to a public school
such as Emerson. These credits are available to individuals filing Arizona state returns.
To take advantage of this tax credit, please send a check today (or postmarked
before December 31st) along with the enclosed form to:
Emerson School
915 East Palm Lane
Phoenix AZ 85006
As a Performing Plus Elementary School in the heart of Phoenix, we are confident you
will agree our students are deserving of your donation. Your donation will help to
provide athletics, after school programs, field trips and more for our students.
If you would like more information about Arizona Educational Tax Credits please visit
the state website at http://www.revenue.state.az.us/brochure/707.pdf.
For more information about our school please visit our website at
http://www.phxelem.k12.az.us/school_sites/emerson.html or call us at 602-2573853.
Thanks for considering a tax credit donation for the students of Emerson School.
Are you ready........? Here is the form you need to print and send with the check
Sincerely,
Your Friends at Emerson School
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CTODP Tuition Tax Credit
Did you know that you can decide exactly where a percentage of your tax dollars goes? As an Arizona taxpayer, you are qualified to receive a dollar for dollar tax credit, up to $1000, for making contributions to Xavier through the Catholic Tuition Organization of the Diocese of Phoenix (CTODP.) Every dollar you designate to Xavier through CTODP reduces your state income tax liability by one dollar with no out of pocket cost to you.
Married couples filing a joint tax return may now receive a maximum $1,000 Arizona state tuition tax credit. Single filers receive a maximum $500 credit for contributions made to Xavier through CTODP. Every dollar you designate to Xavier through CTODP will be directly applied to the tuition of a student in need of financial assistance.
The deadline to participate in this tuition tax credit is December 31, 2007.
Frequently Asked Questions
What is CTODP?
The Catholic Tuition Organization of the Diocese of Phoenix (CTODP) provides scholarships and grants to students attending the schools owned and operated by the Roman Catholic Diocese of Phoenix. Your tax designations provide the funding for these scholarships.
Why is a tax designation to Xavier better than simply paying my tax obligation?
You are not paying out of pocket to support quality education through this tax credit. For example, if your state income tax obligation is $1,400 and you designate the maximum contribution, $1000, to Xavier College Preparatory, your income tax payment to the state is reduced to $400.
How have CTODP designations to Xavier benefited our students?
228 scholarships, totaling $580,000, were granted to Xavier students in the 2006/2007 school year alone.
Who is eligible to receive this tax credit?
EVERY Arizona taxpayer is qualified to receive a dollar for dollar tax credit for making contributions to Xavier through CTODP. Parents, grandparents, aunts, uncles, friends, and employers are encouraged to participate. Every dollar designated to Xavier through CTODP reduces state income tax liability by one dollar.
Can my employer match my donation?
Yes. Double or triple your contribution by urging your employer to match your donation through employer matching funds program.
How can my student(s) apply for financial assistance from CTODP?
Parents of students enrolled in a school owned and operated by the Roman Catholic Diocese of Phoenix, like Xavier College Preparatory, are encouraged to apply to the Catholic Tuition Organization for tuition assistance. Tuition assistance is based on financial need and fund availability.
Applications are evaluated by Financial Aid Independent Review (FAIR) to determine each student’s financial needs. Application forms are provided and processed by the Financial Aid Independent Review (FAIR.)
FAIR application forms, mailing envelopes, and instructions must be obtained from Xavier College Preparatory.
How do I determine what my tax liability is?
Review your state tax return from last year. If your income has not changed drastically, this will give you an idea of your state tax liability you can expect for the current year. You may also want to check with your tax advisor.
Where do I get the tax forms needed to claim the credit?
The Catholic Tuition Organization will send you Arizona Forms 301 and 323, along with your tax receipt, for your convenience. The forms are also available by calling the Department of Revenue or visiting their web site. Typically, the forms are available in early December of each tax year.
Can I take advantage of both the public and private school tax credits?
Yes. A married couple filing joint can donate a maximum of $1000 to a private school, and a maximum of $400 to a public school per year. Single and head of household taxpayers can donate a maximum of $500 to a private school and a maximum of $200 to a public school.
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