As a taxpayer, you initiate a school donation, and Arizona pays the bill? What a deal? This article, in question and answer format, will give you the fine points on how the tax credit works, and how you can donate money to a school'’ activities, which are out of the normal day at no cost to you. 



DONATE ONLINE HERE: Unfortunately, due to a newly imposed $30 per month service fee, the district has discontinued this service. Please contact the district office at 928 768-2507 for other ways to give. 

What is this tax credit I’m hearing about? Is this a tax deduction?

The tax credit means that you get the amount you donate deducted from you Arizona State tax bill for your current year filing, providing that you have a tax liability that is in excess of your donation. The amount of your tax bill will be reduced by the amount of your donation. If you have an amount due, that amount will be reduced by the amount of your donation; if you are entitled to a refund, your refund will be increased by the amount of your donation. We will give you an official tax credit receipt that you will attach to your State return as evidence of your donation. In essence, you initiate a donation that is paid for by the Arizona State treasury. As a taxpayer bonus, you may also list your donation as a charitable donation that is paid for by the Arizona State treasury. As a taxpayer bonus, you may also list your donation as a charitable donation on your federal form if you file the “the long form.”

How much money may I donate for the tax credit?

A married couple filing jointly may donate any amount up to a maximum of $400 during the calendar year. A person filing as a single may also donate any amount up to a maximum of $200 for the year. Worthy of note is the fact that the tax credit is based on a calendar year, not a school year. The deadline for making donations for the current year tax credit has recently been extended to April 15th. As a result of the extension, many people will be able to determine their tax liability AND THEN donate to cover that liability before filing their state taxes.

Anyone may donate for a tax credit; having a child in a school is not a requirement. Grandparents, aunts, uncles, and even family friends might be interested in this, also. Anyone who has a personal state income tax return can donate. 

Why Mohave Valley Schools?

Mohave Valley School District serves a large population of students and families who have financial need. In a recent report, 47% of our students’ families receive some form of income-based state assistance. These families often don’t have extra monies for their students to participate in extra-curricular activities. At the same time, with the shrinking budget, the district has very little additional funding to pay for the extras- after school programs, academic field trips, etc. Every penny raised through tax credits leaves more money in the budget for other important items, including classroom supplies, salaries, etc.

What if I have students in two or more schools? What are the rules for donating?

The rules above apply for the maximum in family donation. If you choose to make donations at multiple schools, that’s fine, but the total donated to all schools selected may not exceed the maximum of $400. You will receive a receipt at each school where you donate.

How and when do I make the donation?

Donations may be made to a specific school at the school office at any time the school office is open. Just come in, see the school secretary, make your donation, get your official receipt, and you’re finished. Just be sure your donation is made before April 15 to be counted for the prior tax year.

Will my donation be used at the school I specify, or will donations be “pooled” among all district schools or go to a general fund for all schools in the state?

Donations made at a school will stay at that school and be used to benefit that school’s extracurricular programs. Regulations prohibit donations given to a specific school to be “pooled” to a larger fund.

How will my donation be used at the school?

The law regarding the tax credit is very specific that donations will be used for extracurricular school activities. Extracurricular is defined as any school-sponsored activity, which takes place outside the school day. This includes after-school intramural activities in which students pay a fee such as clubs, fine arts performances, etc. Field trips may be funded by tax credit donations if there is a student fee attached to the field trip.

What’s the catch? Having the State of Arizona give me a tax credit for a donation I make to a school seems too good to be true.

There is no catch. Your school donation will cost you absolutely nothing out of pocket. People who pay Arizona tax on their income in excess of the amount they choose to donate are really initiating a donation to the school from the State treasury. The only inconvenience is that you must make your donation by April 15th for the prior tax year, and you will not have your tax credit (reduced tax bill or tax refund) until you file your Arizona State tax return.

This article in part was taken from several other schools.