Frequently Asked Questions on School Tax Credit
Do I really get a refund on my entire donation? Yes, if certain requirements are met. The credit is limited based on your marital status. You also must have enough income to incur the Arizona income tax in ordr to use the credit on that years return.
If my credit is more than my Arizona income tax do I lose the ability to get a refund? No, you can carry forward any unused credits for up to five years.
What do I have to do to qualify for this credit? To qualify for the credit you must make a cash contribution or pay fess to a public school for support of extracurricular activites or for character education programs.
Will I qualify for the credit if I pay fees for my own child to paricipate in an extracurricular activity or character education program? Yes, fees that you pay for your own child to participate in an extracurricular activity or character eduacation program qualify for the credit.
Do contributions I make to the school qualify for the credit? Yes, if the contributions are in support of extracurricular activities or character education program.
What is the Maximum dollar amount of the credit? The credit is equal to the amount contributed of the amount of fees paid. However, for single taxpayers or heads of the household, the credit cannot exceed $200. For married taxpayers that file a joint return, the credit cannot exceed $400.
What is the character education program? A character education program is a program defined in ARS 15-719. Under this statute each district may develop it's own course of study for each grade. At a minimum the character education program must include instruction in the definition and pllication of at least six of the following character traits: truthfulness, responsibility, compassion, diligence, sincerity, trustworthiness, respect, attentiveness, obedience, orderliness, forgiveness, and virtue.
What public schools and grades are eligible for the credit? Public schools and charter schools that provide instruction in grades kindergarten through 12th grade are eligible for the credit. Nongovernmental schools, preschools, community colleges, and universities do not qualify for the credit.
What is a fee paid for the support of extracurricular activites? A fee is a dollar amount paid to a public school for the support of extracurricular activies. It is important to note that at least some monetary amount must be levied to partipate in an extracurricular activity in order for the credit to be available.
What are extracurricular activites? Extracurricular activities means 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, use of scientific laboratory equipements or materials, or in-state or out of state trips that are solely for competitive events. Generally, and educational or recreational activities that supplement the education program of the school are considered to be extracurricular activities. AR S 15-342.24 requires each district school board to determine which activities are extracurricular and what fees will be levied.
Must a public school issue a receipt to the taxpayer for contributions or payment of extracurricular activity fees? Yes. The receipt should include the public school name, school district number, taxpayer name, amount paid, date paid, and a description of the activity being supported.