At Catholic Education Arizona, our goal is to help as many children as possible receive a high-quality Catholic education. Catholic high schools in the Diocese of Phoenix boast a 99.4% graduation rate, and 97% of those students go on to higher education or the military. This academic success is made possible in part by the small class sizes and dedication from teachers and staff that Catholic school provides.
However, the tuition costs for Catholic schools often deter people from seeking a Catholic education. That’s why Catholic Education Arizona provides scholarships to underserved students in the schools of the Diocese of Phoenix. Our ability to do so comes from individuals and corporations who take the time to direct their state tax income credit to qualifying charitable organizations. If you’re looking to direct your tax dollars to help students attend Catholic schools, continue reading to learn about important deadlines.
May 17, 2021: Extended Tax Credit Deadline for Individuals
For the 2020 tax year, the deadline for an individual to direct a portion of their state income tax to CEA has been extended through May 17, 2021. This gives you plenty of time to make a Catholic tuition tax credit contribution. All you need to do is look at last year’s state tax return to find out how much you can contribute. If you filed Form 140, look at Line 48. If you filed Form 140PY, look at Line 58. If you’re still unsure how to find out the amount you can contribute, visit our website or give us a call.
Once you know how much you can contribute, you can make the contribution by going online, calling 602-218-6542, or mailing in the contribution form. Through any of these methods, you’ll be able to designate which schools you would like to receive your contribution or direct it to the General Scholarship Fund, which serves the schools most in need. We’ll then send you a tax receipt that you can use when filing your taxes as proof that you contributed to CEA so you can receive your dollar-for-dollar tax credit.
June 30, 2021: Corporate Tax Credit Deadline
Arizona corporations account for more than 30% of CEA’s tax credit contributions. If you’d like to direct your corporation’s 2021 state tax liability to CEA, you have until the state allowed corporate tax credit cap amount has been met. Some years, the cap is reached on July 1. In other years, the cap remains open for several months. To ensure that your application receives priority attention at the Arizona Department of Revenue, we recommend applying before June 30th.
Redirecting your state tax liability to CEA and the Catholic schools we serve is a fairly easy process. First, you need to ensure that your corporation is a C-Corporation, S-Corporation, an insurance company that collects premiums, or an LLC that files its state taxes as a C-Corp or S-Corp. These types of corporations are able to redirect 100% of their state tax liability to organizations such as CEA.
Once you’ve confirmed that you qualify, you’ll need to determine your corporate state income tax liability or insurance state premium tax. You’ll then complete the form and provide it to CEA. CEA will send it to the Arizona Department of Revenue, and once it’s approved, your corporation will then have 20 days to pay CEA for its tax credit contribution. If you’re a C-Corporation, when you file your taxes for 2021, you’ll list the credit on the AZ Form 120 Corporate Income Tax and include a 335 tax credit form. If you’re an S-Corporation, when you file your taxes for 2021, you will include a 335-S with your AZ Form 120S S Corporation Tax Return. Your shareholders will list their pro-rata share of the tax credit on their AZ 140 Individual Tax Return and include a 335-I tax credit form.
If you have any questions about how the tuition tax credits work or how you’re supposed to fill out your forms, contact Catholic Education Arizona.
There are several reasons to direct your tuition tax credits to Catholic Education Arizona including goodwill in the community, investing in the future workforce, optional name recognition and promotional opportunities, and more. If you’re interested in learning more about tuition tax credits in Arizona and how directing your tax dollars can improve a child’s future, contact Catholic Education Arizona today by visiting ceaz.org or calling 602 218-6542.
