Tax Credit Contribution.
Help educate young people by taking a tax credit!
Beginning with the 1998 tax year, the Arizona Legislature has authorized a new tax credit for individual income taxpayers! A credit of up to $200 per individual / $400 for married couples is available for payment of fees to an Arizona public or charter school for support of extra curricular activities.
Heritage Academy, an Arizona charter high school, is dedicated to building character and teaching young people the values and ideals which made America great. We invite your participation in this tax credit program to help fund some of our extra-curricular activities.
Must a taxpayer have a child in school in order to claim this credit?
No. There is no requirement that the taxpayer have a child enrolled in the school in order to claim the credit.
What are extra curricular activities?
Extra curricular activities means school sponsored activities that require enrolled students to pay a fee in order to participate. Such activities may include Constitutional seminars, field trips and history tours, summer camps for student council and yearbook staff training, use of musical instruments, use of laboratory equipment, use of art supplies, or use of certain computer technology. Generally, any educational or recreational activities that supplement the educational program of the school are considered to be extra curricular activities.
How and when do I claim the credit?
Credit against Arizona State income tax is claimed when an individual files his/her state income tax returns.
May I designate which student will receive the benefit?
Yes. However, because several other factors (such as academic performance and behavior) determine a student’s participation in those activities, it is possible that the student may not be allowed to participate in the specified activity. In that case, the funds would remain on the student’s account for future use. Additional questions should be directed to Heritage Academy’s Accounts Manager or to the Arizona Department of Revenue at (602) 255-3381, or to your tax advisor.
Print the form and mail to the address listed on the tax credit contribution or click on the red buttons above to make a contribution to the campus of your choice.
Frequently Asked Questions
- When do I need to make my donation by? For the 2020 tax year, donations can be made up until April 15, 2021 (extended to May 17th), can be applied to your 2020 tax bill.
- What is the difference between a tax deduction and a tax credit? A tax deduction lowers the amount of your taxable income while a tax credit lowers the amount of taxes you owe.
- How does a tax credit work? In 2020, if you had a $1,000 Arizona tax bill, by donating $400 to your child’s school, your tax bill would be lowered to just $600.
- Can only parents take advantage of Arizona’s Education Tax Credit? No – any Arizona resident may donate to a school and take advantage of the tax credit. Grandparents, aunts, uncles, even neighbors can donate and receive a tax credit, as long as they have an Arizona Income Tax liability.
- How large is the tax credit? Couples filing jointly can receive a $400 tax credit for a $400 donation. Single and Head of Household filers can receive a $200 tax credit for a $200 donation.
- Does an entire donation have to be given to just one school? No. Your donation can be applied to multiple schools. For example, if you have two children, one who attends a Heritage school and the other who attends a local elementary school, a $200 donation could be made to each school for a total of $400.
- How do I know if I will have a 2020 Arizona tax liability?
- Single individuals have a $200 Arizona tax liability if they have earned roughly $15,000.
- Head of Household filers (single with dependents) have a $200 Arizona tax liability if they have earned roughly $22,100 and have one dependent.
- Married couples filing jointly have a $400 Arizona tax liability if they have earned roughly $30,000 and have no dependents.
- Married couples filing jointly have a $400 Arizona tax liability if they have earned roughly $34,250 and have one dependent.
- Where can I find more information on Arizona’s Education Tax Credit? Details on Arizona’s School Tax Credits are available here in Pub 707 created by the Arizona Department of Revenue.
What is the Arizona state tax credit for public schools?
Arizona law provides a tax credit for contributions to public schools to support extracurricular activities or character education. Additional support areas include:
- standardized testing fees for college credit or readiness, such as PSAT, AP and IB tests
- career and technical education industry certification assessment
- preparation courses and materials for standardized testing
You can help Heritage students and possibly lower your tax bill by making a donation.
The state tax credit is available to ALL qualifying individual Arizona state taxpayers. You do not need to have a child enrolled in a school to take advantage of this state tax credit. It is always best to consult a tax adviser to see if you qualify for the dollar-for-dollar credit.
A tax credit is different from a deduction, because you may subtract the whole contribution from your Arizona state tax bill. An individual may contribute as much as $200, and a couple filing jointly may contribute as much as $400 to a public school and receive the money back in the form of a tax credit.
Please note: To be eligible for a state tax credit for 2020, your contribution must be received or postmarked by April 15, 2021 (extended to May 17, 2021). ECA donations are not refundable.