What is a tax credit?
A tax credit is a dollar-for-dollar reduction in the actual tax owed. For example, if you owe $800 in state income taxes and you donate $400 to a public school for extracurricular activities, you may subtract the $400 from your tax bill and pay the state just $400.
What is an extracurricular activity?
Extracurricular activity means any optional, noncredit, educational or recreational activity that supplements the education program of the school. Activities such as sports, visual and performing arts, special programs, character building, field trips, clubs, outdoor education, gifted programs or classroom enrichment programs can be funded with tax credit money.
Extracurricular activities help children develop qualities such as leadership, team play and cooperation. They also provide safe, supervised activities after school hours.
Who is eligible?
This tax credit is available to all individual Arizona taxpayers, whether they have children in school or not. An individual can contribute and receive a tax credit for any amount up to $200, or a couple filing jointly may contribute up to $400.
Does all of my money go to extracurricular activities?
Yes, 100% of your donation goes directly to the school for extracurricular activities that benefit students by enriching campus life and learning. None of the money is used for overhead.
May I designate where I want my money to go?
Yes, you may say where you want your donation to go. If you have a child in school, you may donate to the activity in which he or she participates. You may choose a school based on student poverty, type of activity, grade level or location. You may choose a school where not all parents can afford to contribute.
Do I have to donate the full $200 or $400?
No, you may donate up to your $200 or $400 limit in installments during the calendar year or donate it at one time. Any individual who pays Arizona State income tax can donate.
Click to download the AZ Tax Credit Form