Q: What is it?
The Arizona Public School Tax Credit is a unique program that gives Arizona taxpayers the opportunity to contribute to the extracurricular programs at the public or charter school and receive a dollar for dollar credit on their state taxes.
Q: How much can I give?
Married couples filing jointly can contribute $400. Individual filers can contribute $200.
Q: How does it work?
- Make your Tax Credit Contribution to EAGLE College Prep by December 31 of the current calendar year.
- EAGLE College Prep sends you a receipt for your donation. Hold on to it.
- When paying taxes in the spring, you compute your state tax liability and deduct the full amount of your donation.
- The resulting figure is what you actually owe Arizona.
Q: What if I owe the state a remaining balance?
For example: If you have a remaining state tax liability of $1,800, since you donated a $400 tax credit, you immediately reduce that figure to $1,400. That’s the final amount of state tax you owe.
Q: What if the state owes me?
For example: If you are due a refund from the state of $200, since you donated a $400 tax credit, you immediately increase that figure to $600.
Q: So there is no additional cost to me?
That’s correct. You get your donation back through a dollar for dollar credit off your state tax liability.
Q: Can my family, friends, and co-workers make a tax credit contribution to EAGLE College Prep?
Yes! As long as they pay taxes to the state of Arizona, they can take full advantage of the Tax Credit. There is no need to have a child at the school.
Q: Are there other restrictions?
If you have a very low taxable income, you could have state tax liability of less than $400. You might end up going beyond your tax liability. If in doubt, check with a tax advisor.
Contact Alyse Birkemeyer, School Operations Manager, at 602.268.1212