The State of Arizona has enacted legislation that allows an Arizona Taxpayer the option of using a portion of her/his state income tax liability to support qualifying schools. For complete information about this legislation, visit the Arizona Department of Revenue website.
An Arizona resident, filing singly or jointly, can contribute $200 as a single taxpayer ($400 if filing jointly) to PPEP-TEC for extra-curricular and character education. For more information about this tax credit, click here (PPEP-TEC, as a charter school, is considered a public school of the State of Arizona.
Donate to the PPEP School of your choice by sending a check, money order or completing our online donation form.
Specify if you would like your donation to be designated for general support of PPEP school programs or for a specific qualifying extracurricular activity.
Forms must be postmarked or donations submitted online no later than December 31.
When you complete your tax return, you can subtract the amount of your contribution up to $200 maximum (of $400 for married couples filing jointly).
What is a tax credit?
A tax credit is a dollar-for-dollar credit against the taxpayer’s state income tax liability.
Is it a tax deduction?
No. It is a credit on one’s Arizona state income tax return. It is a tax deduction on one’s federal return, but only if itemizing deductions on Form 1040, Schedule A.
What is a tax credit?
Let’s say that a taxpayer has a state income tax liability of $1200, filing singly. The taxpayer can contribute up to $200 (up to $400 if filing jointly) to PPEP-TEC for extra-curricular and character education. The tax liability remains the same-the legislature allows you to contribute those amounts to PPEP-TEC instead of paying the state.
How does the state know I have done this?
If a taxpayer contributes to PPEP-TEC in the manner described above, PPEP-TEC will send a special receipt to the taxpayer and the form needed for filing.
But I usually get a refund anyway.
Will the tax credit mess that up? No. Again, using the example from above: The taxpayer has paid the state $1200 and contributed $400 to PPEP-TEC as tax credits. In filing, the taxpayer finds that his/her liability is only $800. The refund would be $800–$400 for the overpayment of income tax and $400 for the tax credit.
And the tax deduction?
The law allows that tax credits on a state level qualify as a charitable tax deduction on a federal level, but only if itemizing deductions on From 1040, Schedule A.
What if I support other charities or schools?
While we hope that a taxpayer would support PPEP-TEC as fully as possible, we understand that a taxpayer may have other charitable concerns. It is important to remember that a taxpayer can contribute a maximum of $200 (singly) of $400 (jointly) to a qualifying school like PPEP TEC. The taxpayer can split this contribution provided that each school qualifies and that the amount contributed in total does not exceed the limits.
What about the tuition tax credit for students in private school?
This is a tax credit available to Arizona taxpayers and does not impact PPEP-TEC. A taxpayer can fully participate in tax credits with the same benefits. We suggest you contact your favorite private school to find out how to participate in the tuition tax credit.
When do I have to make these contributions?
A taxpayer can make these contributions at any time during the calendar year. To participate, the taxpayer must make these contributions on or before December 31st of the tax year.
I would like to talk to someone about this. What do you recommend?
We recommend that a taxpayer speaks to her/his tax preparer.
OK-I want to participate. How do I do it?
Thank you! The easiest way to participate is to go our donation page and follow the simple directions to make your contribution. The taxpayer can also mail a check directly to PPEP TEC at 802 East 46 Street, Tucson, AZ 85713. Please note “tax credit” on your check.
I believe in what PPEP-TEC does and I want to support that mission. How can I participate?
An employee of PPEP or any of its affiliates can participate either on-line or through payroll deduction.
If I participate through payroll deduction, won’t that mean less take-home pay for me and my family?
No. If an employee chooses to participate in the tax credit program, the Finance/Payroll department would simply reduce your state income tax to offset the amount of the tax credits you choose. Your take-home pay would remain the same and would not be affected in any way.
Do I still get the money back?
A taxpayer’s state income tax liability is determined by law. If a taxpayer owes $1200, that $1200 must be paid. The legislature is allowing you a choice in how your state tax dollars are spent. A taxpayer can simply send it all to the governor and the state legislature or the taxpayer can exercise choice over how a certain amount is used, within the limits of the law (see above).
Do I still get the federal tax deduction?
Yes, but only if itemizing deductions on Form 1040, Schedule A.