Tax Credit Examples
How Does Tax Credit Work With My Taxes?
The important thing to remember is that these are dollar-for-dollar credits off of the donor’s tax liability provided by IBE, Arizona Tax Credit and other STO’s. Whether you pay the state, or you make a contribution to help a child’s tuition, you will contribute the same amount to either party. Take a look at these Department of Revenue examples using private scholarship tax credit.
Tax Credit FAQ's
1. How do I donate my tax credit contribution to STO?
BY MAIL: Complete a donation card and mail it along with your check or credit card information (available in the school office).
ONLINE: Click HERE to be taken to the online donation page.
OVER THE PHONE: Call Arizona Tuition Connection (480) 409-4106 or Institute for Better Education (520) 512-5438.
IN PERSON: With check, cash, card, or money order.
2. How much of my tax liability for 2017 can I redirect?
Single filers may donate up to $546 to the Original Fund, plus an additional $543 to the PLUS program: Total $1,095. Married filing jointly may donate up to $1,092 to the Original Fund, plus an additional $1,085 to the PLUS program: Total $2,177. Any donation that exceeds your state tax liability for the year may be carried over for up to five years.
3. How much can my child receive?
If you have a current private school student who has not received corporate funds previously, and who has not received any PLUS funds previously; a donor may only contribute the Original Tax Credit amount (the first half portion) to your specific child. They may however still give the PLUS amount on top of that, but it will go to the PLUS scholarship general fund at whatever school they choose, or to a student that qualifies to receive plus funds by meeting one of the eligibility requirements below.
If you have a child that has previously been awarded a PLUS scholarship/recommended PLUS funds OR if you have an incoming Kindergarten student, incoming public school student, are an incoming AZ stationed military family, or will have an incoming disabled/displaced student, the donor may contribute the total amount (both portions) directly to your child’s tuition, as they are eligible for both the Original and PLUS funds.
4. Do I have to donate the maximum amount?
Certainly not. Any donation is appreciated. But you must contribute the full Original Tax Credit amount (the first half) before being able to contribute the PLUS fund amount (the second half).
5. Will I receive a receipt?
Yes. If an e-mail address is provided, you will get instant confirmation that your donation was received and processed via e-mail. The STO will mail year-end tax receipts to all donors by January 31st.
Want to learn more about requesting people contribute their private school tax credit to your child? Read ACSTO’s Tax Credit 101 Booklet here to learn more about approaching people, and take the anxiety out of “the ask”!