Have you taken your tax credit?

What if you could determine where your tax dollars go? What if you were in charge of the congressional purse strings?

The Arizona School Tax Credit allows you to do just that. You can send your tax dollars directly to Telesis Preparatory Academy in order to foster after-school and extra-curricular activities. Parents are always talking about how important these activities are; well here’s your chance to put your money where your heart is. Here’s an example of how it might work:

Jane Doe, a single tax payer, will owe $100 to the state of Arizona when her taxes are due April 15. She doesn’t know that yet, but she wants to give some money to her daughter’s school because she’s seen a lot of success with their after-school music program. The music teacher sent home a note asking parents to designate tax credit funds to the music program so they can replace and repair worn-out instruments. Her daughter doesn’t participate in the program now, but she’d like to next year. Jane decides to donate $100 to the program. When she prepares her taxes in the spring, she owes nothing to the State because her tax credit donation reduced her liability to zero.

What if Jane Doe only donated $50? It would reduce her liability by $50, and she would end up owing $50 to the State.

What if she donated $200? If she donated more than she was liable for, the leftover funds would be applied to next year’s liability, so she would owe nothing this year and still get another $100 reduction next year.

The Arizona Department of Revenue has put together a brochure you can view that will probably answer most questions. If you have other questions, give us a call.