Tax Credit Donation

Reduce your Arizona State Taxes and support the Shadow Mountain High School Band with an Arizona Educational Tax Credit Donation

Introduction

The Arizona Tax Credit Program (A.R.S. 43-1089.01) allows any Arizona taxpayer to donate up to $400* to a school of their choice in support of extracurricular programs and get their entire donation back in the form of a tax credit. Contributor’s may donate on behalf of a named student. *Individuals and couples filing jointly may take advantage of this tax credit. A maximum of $200 can be deducted per individual tax return, or couples filing a joint return may deduct a maximum of $400. Speak with your tax advisor if you have specific questions.

Take Action Now! Here is how:

  • Write a check for up to $200 for single individuals (or head of household) or $400 for married couples filing a joint return ($200 if married filing separately), made payable to Shadow Mountain High School
  • Mail completed form and payment to:

Shadow Mountain High School ATTN: Bookstore 2902 East Shea Blvd. Phoenix, AZ 85028

  • All checks must be made payable to Shadow Mountain High School — write “BAND” in the memo space and the band program will be credited with the entire amount. If you want your tax credit to apply directly to the Band account of a specific student, you must write the name of the student next to the word Band in the memo space of your check.
  • Receive a receipt in the mail from the school
  • When you prepare your Arizona state taxes, include Form 322: Credit for Fees Paid to Public Schools. This allows you to subtract the entire amount of your tax credit donation from the state taxes you owe.
  • Claim the donation, to the full extent allowed by law, on your IRS Form 1040 Schedule A, or as directed by your tax professional.

One $200 credit is allowed for each single taxpayer (or head of household) or $400 for married couples filing a joint return ($200 if married filing separately). Credits may be used only to the extent that they reduce state tax liability to zero. However, if you have extra credit left over, you can carry it forward for up to five years. You don’t have to have a child in school to claim the credit. The school must use the money for extracurricular activities, such as after school clubs, field trips or science laboratory equipment. If you have questions about the AZ Tax Credit, contact your tax professional or visit the Paradise Valley Unified School District web site for more information.

Frequently Asked Questions

Q: What does my donation pay for? A: School tax credit donations help pay extracurricular activity fees. Funds can apply to sports, arts and music programs, and most after-school student clubs.
 
Q: How much can I donate?
A: A person filing their tax return individually may contribute up to $200. Married couples filing jointly may contribute up to $400.
 
Q: Is this tax credit only available to parents with students in school?
A: No, this tax credit is available to any Arizona taxpayer, regardless of whether or not they have children in school.
 
Q: I have been donating money to schools for years, what’s the difference? A: Contributions to schools have always been tax deductible. A tax deduction allows you to subtract the amount of a contribution from the amount of your taxable income. This law allows a tax credit, which is subtracted from the amount of taxes you owe.
 
Q: What is the difference between a tax credit and tax deduction? A: A tax credit is a dollar-for-dollar reduction in the actual taxes owed. A tax deduction only reduces total taxable income from which the taxes owed is calculated.
 
Q: Can I choose which extracurricular activities my money should benefit? A: Yes, you can indicate areas of allocation, such as band. Designation must be made at the time of donation.
 
Q: Are all Arizona schools participating?
A: No, only public schools that charge fees for extracurricular activities are eligible for the tax credit. Paradise Valley Unified School District designates which fees the student is required to pay for the band program qualify for the tax credit program.
 
Q: What do I submit with my taxes as proof of this contribution?
A: You must submit the receipt from the school. Once you have given your contribution to the school, a receipt will be provided to you for tax purposes. If you mail in the completed tax credit deposit form with your contribution, a receipt will be mailed to you.
 
Q: When can I participate?
A: Right Now! All you need to do is fill in the Tax Credit Donation Form and write a check made payable to the school of your choice. Mail the form and your check to the attention of the Bookstore Manager at Shadow Mountain High School.

 

Links to more information