Taxpayers in the state of Arizona may claim a nonrefundable tax credit for making contributions as well as paying fees directly to a public school. These contributions and payments or fees defined by law may be support for eligible purposes, programs, or activities.
This public school tax credit is claimed on Form 322 by an individual Arizona taxpayer. A maximum credit of $200 is allowed for a single filer, heads of household, married but filing separately, and $400 for married joint filers.
Included with the Arizona income tax return. The Arizona Department of Revenue requires taxpayers to report the school’s County Code, Type Code, and District Code & Site Number (CTDS) number on for 322, to claim state tax credit contributions or fees paid to public schools. The CTDS is a nine-digit number used by the Arizona Department of Education to identify state public and charter schools.
Contributions or Fees to Public Schools
Public schools in Arizona accept contributions for eligible purposes, programs, or activities. The state of Arizona allows credits against the taxes imposed by the state on amounts of any paid fees or cash donations by a taxpayer. The public school tax credit is stated in section A.R.S.Section 43-401, Subsection G on the taxable year to a public school in the state.
Eligible Activities, Programs, or Purposes.
- Standardized Testing and Fees – these are widely recognized and accepted tests by universities all over the States.
- Extracurricular Activities – these are sponsored activities that supplement the school’s education program.
- Character Education – A designed course of study that illustrates certain character traits.
- Cardiopulmonary Resuscitation Training (CPR) – Based on guidelines recognized nationally.
- Career and Technical Education Assessment ( CTE)
- Playground Equipment and Shade Structures for Playground Equipment
- Students Consumables Healthcare Supplies
- Capital Items – As defined by the Uniform System of Financial Records. (including items listed in section A.R.S. section 14-903, subsection C paragraphs 2 through 8).
- School meal programs. – These are meal programs on school property that takes place before or after regular school days.
Determining If An Extracurricular Activity is Tax Credit Eligible
The following are activities that do not qualify.
- If the activity isn’t sponsored by the school/district.
- If the activity isn’t optional.
- If the activity isn’t for enrolled students.
- If the activity does not supplement with the school/district’s educational program.
- If the activity fee is charged but is not paid directly to the school/district.
- If the activity fee is charged. But is not adopted by the governing board at the public meeting after notice.
- If the activity fee is charged and isn’t waived by the principal. If the activity creates a hardship for the student, as authorized by the governing board.
Requirements for Public Schools When Accepting Contributions or Fees.
Calendar year reports to ADOR (due at the end of February), Form 10621, reports to designated websites for District School or Charter School. Issued receipt to the taxpayer, name of the school, CTDS, taxpayer’s name and address, date, amount, and activity type.
These are only a few of the information in regards to a Public School Tax Credit. If schools have more questions, they likely contact their Attorneys or lawyers.