Tax Credit Donation

Arizona Tax Credit Program

The Tax Credit program allows every person who files an income tax return with the State of Arizona the opportunity to receive a tax credit for contributing to extracurricular activities. These tax credits support extracurricular and character education programs in the Madison School District.

Donations may be used for any school sponsored activities that require students to pay a fee in order to participate or for a character education program. Examples include: foreign language, field trips, enrichment activities, athletic and fine art programs, and after-school clubs.

Who can donate?

Anyone can participate: married or single, with or without children. Married couples filing jointly may claim up to $400. Single persons, heads of households, and married couples filing separately may all claim up to $200.

How Tax Credit Donations Work

For every dollar you donate, the amount you owe on your annual Arizona tax filing will be directly reduced up to the maximums. If you do not owe taxes, the amount you donate may be carried forward for up to five years to offset future tax liabilities.

For example, if a single person owes $300 on their annual state taxes and donates $200, they will then only owe the state $100. If a single person owes $100 on their annual state taxes and donates the maximum amount of $200, they will owe nothing on their taxes for this year and can still use the remaining $100 to offset future taxes.

For more information on these Tax Credits visit the Arizona Department of Revenue’s Website or see ARS §43-1089.01 for more information on the law.