| What is a tax credit?
This is a tax credit, not a tax deduction. A tax credit is a dollar-for-dollar reduction in the actual tax owed. For example, if you owe $900 in state income taxes and you donate $400 to a public school for extracurricular activities, you may subtract the $400 from your tax bill and pay the state just $500.
What is an extracurricular activity?
Extracurricular activity means any optional, non-credit educational or recreational activity that supplements the education program of the school. Activities such as sports, visual and performing arts, special programs, field trips, character education, clubs or outdoor education can be funded with tax credit money. Extracurricular activities help children develop qualities such as leadership, team play and cooperation as well as provide safe, supervised activities after school hours.
What is a character education
program?
A character education program is a
program defined in ARS § 15-719. Under this
statute each district may develop its own course
of study for each grade. At a minimum, the character
education program must include instruction in the
definition and application of at least six of the
following character traits: truthfulness, responsibility,
compassion, diligence, sincerity, trustworthiness,
respect, attentiveness, obedience, orderliness, forgiveness
and virtue.
Who is eligible?
This tax credit is available to all Arizona individual taxpayers regardless of whether or not they have children in school. An individual can contribute and receive a tax credit for any amount up to $200, or a couple filing jointly can contribute up to $400.
Does all of my money go to extracurricular activities?
Yes, 100 percent of your donation goes directly to the schools for extracurricular activities that benefit students by enriching campus life and learning. None of the money is used for overhead.
Can I designate where I want my money to go?
Yes, you can say where you want your donation to go.
You can choose your child's school, split the donation
between on or more Paradise Valley schools, and designate it
for any extracurricular activity or character education
program you choose. You can donate to a school based
on student poverty, type of activity, grade levels
or location. If you want to donate to a school or an
activity where not all parents can afford to contribute,
you may do this.
Do I have to donate the full $200 or $400? No,
you may donate up
to your $200 or $400 limit in installments
during the calendar year, or donate it at one time.
Do I have to live within the Paradise Valley Unified School District?
No, any individual who pays Arizona State income tax
can donate. Anyone with or without children, married
or single, can take advantage of this tax credit.
Note: We do our best to ensure that your donation is
used for the purpose(s) you specify. But if for some
reason your donation cannot be used for that activity,
such as when a field trip or a performance is cancelled,
the school will use your money to support another worthwhile
eligible activity. |