Frequently Asked Questions about Tax credit Donation
What is a tax credit?
This is a tax credit, not a tax deduction. A tax credit
is a dollar-for-dollar reduction in the actual tax owed. For
example, if you owe $900 in state income taxes and you donate $400
to a ACA, you may subtract the $400 from
your tax bill and pay the state just $500.
Who is eligible?
This tax credit is available to all Arizona individual taxpayers
regardless of whether or not they have children in school. An
individual can contribute and receive a tax credit for any amount up
to $500, or a couple filing jointly can
contribute up to $1000.
Do I have to donate the full $500
or $1000?
No, you may donate up to your $500
or $1000 limit in installments during the
calendar year, or donate it at one time.
Do I have to live within the
Phoenix area?
No, any individual who pays Arizona State income tax can donate.
Anyone with or without children, married or single, can take
advantage of this tax credit.
Note: We do our best to ensure that
your donation is used for the purpose(s) you specify. But if for
some reason your donation cannot be used for that activity, such as
when a field trip or a performance is cancelled, the school will use
your money to support another worthwhile eligible activity.