About the Arizona Tax Credit
In 2002, the Arizona State Legislature passed Arizona Tax Law ARS 43-1089.01 providing tax credits to taxpayers contributing to public and private K-12 schools. This tax law allows single taxpayers or heads of household to claim a $200 credit (maximum credit allowed) or married taxpayers filing jointly a $400 credit on their state income taxes when they make a contribution to a K-12 public or charter school. The contribution must be for extra curricular activities or character education programs.
The tax credit can only to be used to reduce an individual’s tax liability and refunds are not provided to individuals without a tax liability. Additionally, trusts, estates, regular corporations, S corporations and partnerships are not eligible to claim this credit.
For the tax year 2004, the State of Arizona Department of Revenue reported that Arizona public schools received contributions of $30.96 million to extra curricular activities and character education programs. For the tax year 2007, that number grew to contributions of $43.9 million, with contributions from 211,270 people.
For more information on the Arizona Tax Law ARS 43-1089.01 click here.
