What is Tax Credit?In this instance, the "Tax Credit" is part of a state law that, amoung other things, allows individuals to donate up to $200 and married couples to donate up to $400 to the public school of thier choice and take the donation as a tax credit on their Arizona Income Tax Return (Arizona Revised Statute 43-1089-02).

Can two married taxpayers filing a joint return both be eligible to claim the maximum credit? No. The statute allows only one $400 credit per household per year.

Can a taxpayer receive a refund of these credits? No. THe credits can only be used to the extent they reduce state liability to zero. Unused amounts may be carried forward for up to the next five taxable years.

Who is eligible to receive the donation? Public schools and charter schools are eligible to receive the donation. Preschools, non-governmental schools, community colleges, and universities do not qualify.

Must a taxpayer have a child in school in order to claim this credit?No. There is no requirement that the taxpayer have a child enrolled in a public school in order to get the credit.

Can you give more than one school?Yes. however, the total amount claimed cannot exceed $200 for individuals and $400 for married couples in the calendar year, and you must have receipts from each school.

Can you use this as a deduction on your federal return? In may be possible, but it is subject to the IRS's policy on donations. For example: If you ar ein the 28% tax bracket, you might be able to take $56 of your donation as a charitible donataion on your federal return. (Please consult your accountant).

What does this money go for? This money can be spent by the individual schools on programs and activities that benefit children. Musical instruments, uniforms, and athletic equipment are just some of the items that can be purchased with these funds.

Who decides how the money is spent? Normally, the site councils who are made up of parents, teachers and studetns.

How can I make a donation?

• Residents - you can make a donation at any school. You will be givent a numbered receipt for your tax records.
• AJUSD Employees - Employees may have a donation made through a payroll deduction under a program known as ASSIST (Aiding Students Success through the Individual State Tax return.) ee your school secretary for the appropriate form.

For information call: 982.1110 ext 2001

If you have questions about applying for your tax credit on your Arizona State Income Tax return, please visit the Arizona Department of Revenue's web site at www.revenue.state.az.us for the appropriate information. You may also call 602.255.3381 to receive additional information or to request the correct form.