AZ State Public School Tax Credit
Understanding How Tax Credits work
FHUSD TAX CREDIT PROGRAM
As detailed on the FHUSD tax credit webpage
Here’s your chance to make an important contribution to education in our Fountain Hills schools—and receive a lot of credit for your generosity and community spirit. Of course, we’ll lavish you with thanks and praise, but there’s something you may find even more rewarding.
An Arizona state tax law (ARS 43-1089.01) allows individual tax payers a tax credit of up to $400* (per return) on Arizona Income taxes when they make a financial contribution in support of extracurricular activities in any public school.
The kinds of programs you can help fund range from sports and band fees to lab sciences and art projects. The Fountain Hills Unified School District is committed to maintaining these activities for the enjoyment and enrichment of our students. Unfortunately, our funding is not sufficient to offset all of the associated costs. As a result, these programs must depend on fees from students. And that’s where you can help.
Every Arizona Resident is Eligible
The tax credit is available to all individual tax payers in the state of Arizona, regardless of whether or not they have children enrolled in public schools.
*$200 for those that file individually or $400 for those that file jointly. Business, Trusts and Estates are excluded.
You May Already Be a Winner!
You may already have saved up to $400* on your tax bill if at any time since January 1, 2021 you donated or paid fees toward extracurricular activities at your local public school. If that’s the case, be sure to contact the school for a receipt.
*The amount is per calendar year, not school year. If it’s already been receipted up to $200 for individuals, or $400 for joint filers for a particular tax year, we can’t provide additional receipts for that same tax year.
Winning is Easy!
To claim your Arizona state tax credit, just make a donation in an amount you feel comfortable contributing. Whatever amount you give will be offset by a dollar-for-dollar tax credit for the applicable tax year—up to $400* per tax return! The schools and programs you support are entirely your choice. The law simply states that your donation must go directly to a local school to be used for its extracurricular activities.
It’s that easy! Write a check to the school(s) of your choice, and get a receipt verifying your donation to an extracurricular activity. Then, next spring, simply claim your tax credit—up to $400*—when you file your tax return.
The Money Goes Where It is Needed unless you designate a specific use for the donation.
Eligible contributions under this plan go directly to local schools—not to the state, not even to the school districts. And the funds are not subject to the revenue control limit that prevents schools from spending more than a fixed amount for programs. Your donation will go exactly where you want it to—immediately helping more children become involved in fun, meaningful, and life-enhancing activities. And, in the process, it will make more funding available for academic programs.
*Not all extracurricular activities apply. It’s subject to Arizona Department of Revenue’s guidelines.
Give Today!
Fountain Hills schools are planning now for this year’s activities. Your timely contribution can make a big difference in a young person’s life by providing fun, worthwhile activities in a safe, supervised environment.
With our expanding student population, funding for extracurricular activities has never been more critical. And with the tax credit program available, giving has never been more logical or attractive.
Thank you for your generous contributions that help students become active in meaningful and rewarding activities.
**No one at the district is a tax consultant. This information is not meant as tax advice. Please refer tax questions or concerns to a qualified tax consultant.
EXAMPLE OF APPLYING A TAX CREDIT
Taken from the FHUSD Website
Here is an example of how to apply for and use your Arizona Tax Credit for lowering income tax liability with paid fees
Arizona taxpayers may earn a dollar-for-dollar tax credit/reduction for donations made or fees paid to a public school located in Arizona for extracurricular activities (athletics, clubs) or standardized testing fees for college readiness (SAT, PSAT, ACT, advance placement)
The amount of cash donated or fees paid to a public school is deducted from your Arizona income tax liability. The maximum amount deducted must not exceed:
- $200 for single taxpayers or heads of household.
- $400 for married taxpayers filing a joint return.
E.g. John is single and has a tax liability of $500. He has to pay $150 in athletic fees for his child. He can claim $150 as tax-credit and his tax liability will be reduced to $500-$150 = $350.
E.g. Mary is married and has a tax liability of $800. She has to pay $600 in club fees for her child. She can claim $400 (maximum amount for married taxpayers) as tax-credit and her tax liability will be reduced to $800-$400 = $400.
If the allowable tax credit is more than your tax or you have no tax, you may carry unused credit forward for up to five consecutive taxable years’ income tax liability.
Donations or fees made between January 1 and April 15 of each calendar year may be claimed as a tax credit in either the current or the prior year at the taxpayer’s discretion.
Donations or fees made between April 16 and December 31 during a calendar year may be claimed for that tax year.
Note: Taxpayers should consult their tax preparer for further guidance.