The Arizona Public School Tax Credit Program enables residents of Arizona with state income tax liability too redirect their state tax dollars Arizona Public School Tax Credit Program through making a contribution to an Arizona public school, which includes Desert Sage High School.

A.R.S. 42-1088 provides a state income tax credit of up to $400 for married couples filing a joint return, or $200 for single and head of household filers. These monies are used to support extracurricular and character education programs. This tax credit counts as a dollar-for-dollar credit against your income tax liability, so it simply redirects taxes you have to pay. Taxpayers get 100% of the money credited to them when they file their Arizona income taxes, provided their total Arizona income tax liability for the entire tax year adds up to at least as much as they donate (up to the limit). If a taxpayer’s total tax liability is less than they donate, the difference can be rolled over as a credit against next year’s Arizona income taxes.

A tax credit is much better than a tax deduction. A tax credit reduces your Arizona income taxes dollar-for-dollar, while a tax deduction only reduces the taxable income upon which taxes are calculated. If you claim the tax credit, you cannot claim a deduction on your Arizona return. However, you might also be able to claim an itemized deduction for the tax credit donation on your federal tax return; please check with your tax advisor.

You may claim the tax credit even if you have already contributed to another type of tax credit program, such as the private school tuition tax credit or the working poor tax credit. While you can only contribute up to a total of $400 (married) or $200 (single) in public school tax credits in a given tax year, you can contribute to other types of tax credit programs as well, such as for private school tuition scholarship organizations or the working poor tax credit.