Many are not aware, but Arizona has a really great tax credit that allows you to receive a dollar-for-dollar tax credit with your donations to private schools. These donations can be designated to a specific school and child.
The credit limit is $1000 for married couples and $500 for individuals and it can be carried over for up to 5 years.
Donations can be made at any time during the year and are distributed to the schools 4 times a year. New this year ACSTO has even provided a way for you to have the funds done through payroll withholding to spread out your distribution.
If you have AZ state tax liability, donating to ACSTO is a great way to offer us financial support and receive a benefit to yourself as well.
Here’s an example of how it works.
Joe & Jane Doe have $350 dollars withheld from their paychecks during 2009 for state taxes.
After completing their 2009 taxes they owe an additional $150.
So they have a total 2009 tax liability of $500.
But they donated $500 to ACSTO during 2009 and receive a dollar-for-dollar credit.
They do not owe additional state taxes, plus…
They will receive a state tax refund of $350 (for money already paid).
Now say in the above example that Joe & Jane had donated $1000 during 2009 but only had $500 in tax liability. They would still owe nothing, receive a refund of $350 and then they would have a credit of $500 to carry forward for 2010 (up to five years).
Tax time is a perfect time to assess what your 2009 tax liability was and plan ahead for 2010.
Donations can be made to ACSTO online. (Under “Recommendation” select Phoenix Christian Unified Elementary – West Campus, Goodyear. Then under “Student” you can enter the names of any of our kids – Noah, Wendemagegn, Beza, Natalie.) Your donation can be done in pieces throughout the year and anything donated before Dec. 31st will count toward your 2010 taxes.
ACSTO doesn’t notify parents of who made donations to their children so if you do give, please accept our sincerest thanks. Our childrens’ Christian education means a lot to us and we are grateful for God’s provision.