Tax Credit Donation Form

FAQs

ARS 43-1089.01

Tax Credit Brochure

Thank you for your interest in the Arizona School Tax Credit program. Directing your funds to CVHS school is a great way to help kids participate in enriching extracurricular activities. Ready to participate?
 

Tax credit donations help with arts programs and after-school activities such as sports, clubs, tutoring, or study groups. It's not really a donation though, think of it more like a loan. When you send a check to CVHS before Dec. 31, your State tax liability is reduced by the amount you send. In other words, you get your money back dollar-for-dollar in the form of a tax reduction. Here's an example:
 

Jane Doe, a single tax payer, will owe $100 to the state of Arizona when her taxes are due April 15. She doesn't know that yet, but she wants to give some money to her daughter's school because she's seen a lot of success with their after-school music program. The music teacher sent home a note asking parents to designate tax credit funds to the music program so they can replace and repair worn-out instruments. Her daughter doesn't participate in the program now, but she'd like to next year. Jane decides to donate $100 to the program. When she prepares her taxes in the spring, she owes nothing to the State because her tax credit donation reduced her liability to zero.

What if Jane Doe only donated $50? It would reduce her liability by $50, and she would end up owing $50 to the State.

What if she donated $200? If she donated more than she was liable for, the leftover funds would be applied to next year's liability, so she would owe nothing this year and still get another $100 reduction next year.
 

It's easy to make a contribution to CVHS, and it really helps kids. You don't even have to have kids in school - any Arizona taxpayer can participate. How about some easy step-by-step instructions?
Make your contribution by either delivering it or mailing it to the school by Dec. 31, 2007.
Use Form 322 to deduct your contribution from your Arizona state taxes.
 

Experience the satisfaction of helping children excel in school. We thank you!
 

FAQs

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. Do I have to live within CGUHSD?
A. No, any individual who pays Arizona State income tax can give to a CGUHSD school.
 

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 CVHS 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 CVHS, 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. 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 to CVHS by December 31.
 

Q. I'm ready to donate. Now what do I do?
A. Simply fill out the Tax Credit form and bring it in, or mail it, with your donation to the CVHS. Remember to make your check payable to Casa Verde High School and deliver or postmark it by December 31. We will mail you a receipt to use in your tax preparation soon after we receive your donation. Be sure to submit the form before midnight, December 31.
 

ARS 43-1089.01

43-1089.01. Tax credit; public school fees and contributions; definitions
A. A credit is allowed against the taxes imposed by this title for the amount of any fees or cash contributions made by a taxpayer during the taxable year to a public school located in this state for the support of extracurricular activities or character education programs of the public school, but not exceeding:
1. Two hundred dollars for a single individual or a head of household.
2. Three hundred dollars in taxable year 2005 for a married couple filing a joint return.
3. Four hundred dollars in taxable year 2006 and any subsequent year for a married couple filing a joint return.
B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.
C. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
E. The site council of the public school that receives contributions that are not designated for a specific purpose shall determine how the contributions are used at the school site. If a charter school does not have a site council, the principal, director or chief administrator of the charter school shall determine how the contributions that are not designated for a specific purpose are used at the school site.
F. A public school that receives fees or a cash contribution pursuant to subsection A of this section shall report to the department, in a form prescribed by the department, by February 28 of each year the following information:
1. The total number of fee and cash contribution payments received during the previous calendar year.
2. The total dollar amount of fees and contributions received during the previous calendar year.
3. The total dollar amount of fees and contributions spent by the school during the previous calendar year.
G. For the purposes of this section:
1. "Character education programs" means a program described in section 15-719.
2. "Extracurricular activities" means school sponsored activities that require enrolled students to pay a fee in order to participate including fees for:
(a) Band uniforms.
(b) Equipment or uniforms for varsity athletic activities.
(c) Scientific laboratory materials.
(d) In-state or out-of-state trips that are solely for competitive events. Extracurricular activities do not include any senior trips or events that are recreational, amusement or tourist activities.