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Tax credit donation helps schools, youOur idea: Making donation a holiday giving tradition will pay for education 'extras,' benefit taxpayers' bottom line
WHAT DO YOU THINK?
Tucson, Arizona | Published: 12.08.2007
Arizonans have a chance to combine the generosity of the season with a tax break. The Arizona School Tax Credit is a good way to help kids.
Our idea is to make a tax credit donation to an Arizona school part of your holiday giving. It helps schools, it helps students and it helps you.
The great thing about making these donations is that the school benefits and you get a dollar-for-dollar tax credit on your state income taxes next year.
The tax credits are supposed to help schools pay for what, in many schools, have unfortunately become extras. For example, many public schools, which include district or charter schools, rely on tax credit donations to pay for music and art classes and to cover student fees for after-school sports.
The law says donations must be used for extracurricular activities, field trips or character education programs, so they can't be used to pay for regular schooling like textbooks or teacher salaries. This means the money pays for marching band uniforms, art supplies, fees for sports teams.
The result, however, is that schools in wealthier neighborhoods — where families can afford to pay fees for extracurricular activities — typically receive more money in donations than schools in poor neighborhoods. And, predictably, families who can't afford to pay activity fees usually can't afford to make a school donation, either, so the schools that need the money the most aren't receiving it.
For example, Van Buskirk Elementary, a South Side school near South Park Avenue and East Irvington Road, received $4,450 in tax credit donations last year. That's about double what it was five years ago, but still a fraction of the $73,480 in donations taken in by Fruchthendler Elementary School, located in the Catalina Foothills.
Over the years, we've heard how some Tucsonans are leveling the field. Churches have adopted schools across town and encouraged their congregants to give to a school in need. People who don't have children look for a school that doesn't receive many donations and direct their donations there. Grandparents whose grandchildren live outside of Arizona donate to a local school in their honor.
To make a tax credit donation to a public district or charter school, you should give your contribution directly to the school or district office. Indicate that it's a tax credit donation and if it is for a specific purpose, like music or sports. However, if you want to give a school money and let it decide where it's most needed, indicate that you're making a tax credit donation. The school should give you a receipt for your tax records.
The public school tax credit is up to $200 for single taxpayers or heads of households or $400 for married taxpayers filing jointly.
The law prohibits tax credit donations to private schools. Instead, Arizonans can receive a tax credit by donating to a tuition organization that gives scholarships or grants to qualified private schools. However, you cannot give money to a tuition organization for the benefit of your own child or dependent.
The private school tuition credit is up to $500 for single taxpayers or heads of households, and up to $1,000 for married taxpayers filing jointly.
We encourage Tucsonans to make a tax credit donation to a school this holiday season.
It's the perfect time because giving is in the air — and the deadline for donating so you can claim a credit on your 2007 taxes is Dec. 31.
For more information about the Arizona School Tax Credit visit http://www.azdor.gov/ResearchStats/Schooltaxcredit.htm
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