Tax Credit

  • Have you ever wished you could designate where your state tax money goes? Well, you can. Thanks to Arizona Revised Statute 43-1089.01 enacted in 1998, taxpayers may receive up to a $400 tax credit on their State income taxes by contributing to one of Washington Elementary School District's extracurricular activity programs.

    The tax credit program gives a dollar-for-dollar reduction in state income taxes. This law allows taxpayers the opportunity to designate their tax dollars to directly benefit schools and students.

    According to the law, this money must be designated for extracurricular activities that supplement the educational program. These activities may include: before- and after-school band clubs; classes; sports programs; and non-recreational field trips. Extracurricular programs provide positive learning experiences for children.

    For further information contact Finance at 602-347-2631.

    Tax CREDIT not Tax Deduction!
    A tax credit is a dollar-for-dollar deduction in the actual tax owed. For example:
    If you owe $650 in state income taxes and you donate $400 to a public school, you may subtract $400 from your tax bill.
    The actual state tax owed would be $250.

    Tax credit donations must be made on or before April 15 to be applied to the prior year's taxes.
    State Department of Revenue Guidelines
    • Checks must be made payable to the individual school or district of the taxpayer's choice.
    • The credit is $400 for married taxpayers that file a joint return and $200 for single taxpayers or heads of households. If married taxpayers file separate returns, each spouse may claim one-half of the credit that would have been allowed. The credits may only be used to the extent that they reduce a tax liability to zero. Any unused amounts may be carried forward for not more than five consecutive years.
    • It is not a requirement that the taxpayer have a child enrolled in school. If not designated by the contributor, the school will choose a program based on greatest need.
    • When the school or district receives the check, a receipt will be issued for the individual's tax record. The District will also submit notification to the Arizona Department of Revenue.