Tax Credit Donations to LFPA Schools

LFPA Tax Credit Donation Form 2017

Thank you for your interest in helping our schools.  Contributions are to the school of your choice for extracurricular activities described below and character programs.

Extracurricular activity means any optionalnon-credit activity that supplements the education program of the school.  Activities such as field trips, after-school enrichment programs, character education, clubs, athletics, visual & performing arts, and in-state or out-of-state trips solely for competitive events can be funded with tax credit money.

Senior trips or events that are recreational, amusement, or tourist activities CAN NOT be funded with tax credit money.

Open the link below for more information regarding the state tax credit:
https://www.azdor.gov/portals/0/brochure/707.pdf.

Commonly Asked Questions

Who can make a contribution?    Schools can accept contributions only from individuals. Schools cannot accept contributions from businesses or corporations.

Do I have to have children enrolled in school?   No – Any Arizona individual paying state income tax can make a tax credit contribution to be used towards extra-curricular fees.

Do I have to live within the District?   No – Any individual who pays Arizona State income tax can contribute.

Do I have to donate the full $200 or $400?   No – But remember, you can take this credit on any tax liability for state income taxes up to $200 on an individual tax return or $400 on a joint return. You may donate up to your $200 or $400 limit in installments during the calendar year or donate it at one time.

How does this work on my tax return?   As an example, let’s say you made a $300 tax credit contribution. When you file your state taxes, you will note the credit with a 322 form. (downloadable from the State.) If your State tax return calculates to a $400 liability (you owe) then applying the credit will reduce your liability to $100. However, you cannot receive a refund greater than your State income tax assessment for the tax year.

Can a taxpayer receive a refund of these credits?  No – The credits may only be used to the extent they reduce a tax liability to zero on your Arizona tax return. Any unused amounts may be carried forward for not more than five consecutive taxable years.

Can a taxpayer make a payment of fees to an organization (e.g., PTA, school foundation, school district or school club) which then gives the funds in a lump sum to the school or directly pays for extra-curricular activities?   No – ARS § 43-1089.01 requires that the fees be paid “to a public school”. Therefore, the payment must be made directly to the public school only.