Arizona taxpayers have the choice to direct a portion of their state tax liability to charitable causes they care about. One tax credit option is changing the lives of Arizona children by helping them receive a quality, Catholic Education through the Private Education Tax Credits that turn tax dollars to tuition scholarships.
Catholic Education Arizona (CEA) is a non-profit, School Tuition Organization that collects tax credit contributions for tuition scholarships at 37 Catholic Schools within the Diocese of Phoenix. 99.4% of students who attend one of 6 Diocesan Catholic high schools graduate. Additionally, 97% matriculate to higher education or enter military service.
Let’s take a look at some common questions about individual tax credit contributions and the impact this legislation has on our future leaders.
How much of my state income tax liability can I use for the Private Education Tax Credit?
Taxpayers may direct any amount of their state tax liability up to the maximum set by state law for the tax credit. without exceeding their liability. For Tax Year 2020, single filers can direct up to $1,183 and joint filers can direct up to $2,365.
Is here a deadline for my tax credit contribution to be made by?
In order to receive credit on their 2020 tax return, taxpayers must make their Private Education Tax Credit contribution by April 15, 2021. Beginning January 1, 2021, taxpayers can begin contributing for Tax Year 2021 tax credits as well.
How can I contribute to Catholic school scholarships through Catholic Education Arizona?
One of the easiest ways to direct your state tax liability to CEA is to do it online through the contributor portal. First, determine how much you can contribute by reviewing your state income tax return last year. Liability is listed on Line 48 on Arizona Tax Form 140 or Line 58 on Arizona Tax Form 140PY. Although this is your amount from last year, it should give you an idea of how much you can contribute, as long as you didn’t have a change in employment and/or income this year.
Once you know how much you want to contribute, it only takes a few minutes to complete the process. Visit www.ceaz.org/contribute where you can use your Contributor Portal or contribute as a guest. If you’ve contributed previously, you’ll be able to use the contributor portal to review and manage your contribution history. You will receive a tax receipt via email once you’ve completed your contribution. You may also print your tax receipt from the contributor portal. No e-mail? No problem! We will mail you a receipt for tax purposes.
If you prefer to mail your contribution, you may download a contribution form from www.ceaz.org/contribute or contact Catholic Education Arizona today at 602-218-6542. We are happy to take your tax credit contribution by phone using a credit or debit card. Scheduled Pay is a convenient, budget-friendly way to take your tax credit monthly, ask us about it when you call!
Can I choose where my contribution goes?
You can designate which school or schools you’d like to receive the benefit of your tax credit contribution or the General Scholarship Fund, for the schools with highest unmet need.
Who determines a family’s eligibility to receive scholarship assistance?
CEA partners with an independent, third-party organization, Financial Aid Independent Review, Inc. (FAIR). FAIR determines scholarship recipients through a complex financial need analysis based on a variety of factors. Once awards are determined for students, CEA sends the funds directly to the student’s school.
Directing your state income tax liability to CEA is a great way to support a cause that is very important and will help us change lives, one scholarship at a time. If you have any questions about the Private Education Tax Credit, please contact Catholic Education Arizona and start creating future leaders.