|Tax Credit Donation Information|
A Great Way to Support Your School
Two methods to contribute:
This credit, effective January 1, 1998, allows an Arizona taxpayer to contribute $200 per individual tax return or $400 per joint tax return to a school’s extra curricular program. Contributions are to the school of your choice. In Gilbert School District we have many extra curricular programs that can benefit from these funds! They include classroom field trips, after-school enrichment programs, and athletic and tournament fees. A new revision to this law requires us to use the funds for educational or competitive events; senior trips and events that are recreational, amusement, or tourist activities are not allowed.
Please consider making your tax credit contribution to a Gilbert Public School! We have two options: you can download the attached form and mail it or bring it to Gilbert Public Schools Business Services, 140 S. Gilbert Road, Gilbert, AZ 85296, or you can process your contribution on-line. Tax credit contributions must be postmarked, or electronically submitted by December 31 of each year in order to be applicable for that tax year. A tax credit receipt will be mailed to you.
Commonly Asked Questions
Who can make a contribution?
We can accept contributions only from individuals. We 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, lets 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 $500 refund, applying the credit will increase your refund to $800. 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.