TAX CREDIT PROGRAMS BENEFIT EVERYONE!
Did you know that anyone paying Arizona income taxes can choose to “self-direct” a portion of their state income taxes in support of Arizona’s “School Choice” policy? In local terms, this means that AZ tax payers can choose to channel their taxes back into our local economy by designating the funds for private school tuition. This program has tremendous potential to infuse Wickenburg with a desperately needed revenue stream, by individuals designating the funds that are already being collected in the form of state income tax.
As you consider your options for end-of-year giving, local charitable groups encourage you to first take advantage of opportunities where your tax obligation can be re-directed to organizations and causes you support. If you have a personal Arizona state tax liability, YOU can decide where the money you owe goes, and many, like Caritas Academy, benefit in significant ways. Donations to numerous Arizona organizations qualify for a dollar-for-dollar state tax credit. These “donations,” in effect, cost you nothing, as you are re-directing state tax dollars you already owe to fund your donation(s).
The state of Arizona has established annual tax credit maximums a donor can claim for each eligible class, so you will need to understand those details as part of your overall planning. If you are uncertain about how you can participate, just ask your tax professional for details.
Here are the options you have for re-directing what you owe in AZ state taxes:
If you file your state taxes as a single person, there are $1,707 in credits available to you. (If you’re married, just double that.)
- Qualifying Charitable Organizations – up to $200 for any charity on the list, including the local CAP office, and up to $400 if the charity also qualifies as a foster care organization
- Public School extracurricular activities or character education programs, such as WHS Boosters – up to $200
- School Tuition Organizations (for private school student tuition) – up to $1,107
Again, married couples can double those amounts. Any option you pick is a win, and if you have a large enough state tax liability, you can give to all three!
Caritas Christian Classical Academy benefits specifically from the third option – donations to a School Tuition Organization (or STO). We partner with many STO’s that award scholarships to our students. With some, you can designate a specific school or recommend student(s) as potential beneficiaries. If you have a family you want to recommend, don’t hesitate. Otherwise, please consider recommending our school or a combination of both.
Remember, if you owe the taxes anyway, it’s important for our community-at-large that you consider allocating as much of your state tax liability to these causes. It just makes sense and is good stewardship. If you have any questions about these tax credits, visit www.azcredits.org.
Thank you for making a difference with your tax dollars this season.