What is the Arizona School Tax Credit? The state of Arizona offers a generous tax credit for individuals and families that benefits both taxpayers and schools. ARS 43-1089 allows a dollar -for-dollar tax credit (up to $400 for married filing jointly and $200 for filing singly) for fees or contributions paid to an Arizona public or charter school in support of extracurricular activities, field trips, character education programs, and to purchase science equipment for after school clubs.
It won’t cost you a dime, and it gives you a say in how your tax dollars are spent. For example: If you donate $150 to STAR School’s Grand Canyon Youth river trip, you will reduce your AZ state tax bill by $150. If you expect a refund, it will be $150 higher. A full 100% of those funds are then available for STAR School’s GCY river trip program. Making a school tax credit donation is really just redirecting your tax dollars into something that matters to you.
(Please note: If you pay $0 or limited AZ state income tax, you can’t reduce you liability below $0.)
Why Donate to STAR School? Funding from the state covers only the very basic costs of instruction. Your support makes sure that we can offer the best education possible for our students and continue to act as a model for other indigenous and green schools. Your donation can provide opportunities for service learning activities that enable students to engage in their community and become leaders, as well as support after school activities such as arts, music, science clubs, sports, and outdoor learning adventures.
How many times may I make a School Tax Credit donation? You can either make one lump sum donation (up to $200 single tax filer, $400 married couple filing jointly) per year or you can make installments throughout the tax year. If your school tax credit donation is in an amount greater than your current tax liability, you can carry forward unused amounts for up to five consecutive taxable years.
Do I have to have a child in an Arizona school to take advantage of the AZ School Tax Credit? No. All Arizona taxpayers are potentially eligible—so tell your friends, family, co-workers and neighbors. You don’t need a child in school to qualify.
What Programs Will be Benefitted by My School Tax Credit? You can designate a particular program or have us apply it to a central fund for qualifying programs where it’s needed.
- STAR School Grand Canyon Youth River Trip
- Service learning, peacemaking, and character education
- After school activities and clubs
- Student field trips
- Central fund for qualifying programs where it’s needed.
How Do I Claim the School Tax Credit? You may donate to The STAR School Arizona Tax Credit Fund Here:
Or by mailing a check payable to The STAR School 145 Leupp Rd. Flagstaff, AZ 86004.
Please indicate which Arizona Tax Credit qualifying fund you would like to designate your contribution to. A receipt will be mailed to you that you can submit with your tax return.
You don’t need to itemize your deductions to benefit from this tax credit. However, if you do itemize, you may also be eligible to take a deduction on your federal income tax return for a charitable contribution.
You must donate by December 31 to be eligible to take the tax credit for the current year.
For questions regarding school tax credits, visit the Arizona Department of Revenue’s website at www.azdor.gov. For questions regarding your individual tax situation, please consult a tax preparation professional.