Putting money toward causes that help others obtain an education is a noble cause that many community-minded individuals support. In many places in the United States, there are community drives, charities, and other ways for people to do this. Scholarships are often created in people’s names to honor them, or individuals may contribute to scholarship funds.
Regardless of the cause, in most cases, money comes directly from the donor’s bank account. While there’s nothing wrong with that – donation is never a bad thing! – most people would prefer to find other ways to contribute. That’s where taking your Private Education tax credit comes in.
The Benefits of Directing
In Arizona, there are alternatives to traditional donations that allow generous citizens to put money toward education. One of these is the direction of tax dollars through the Arizona Private Education Tax Credit. In Arizona and 16 other states, taxpayers are given the opportunity to opt into directing a portion of their tax liability toward Catholic schools, many of which are providing high quality educational opportunities.
The Difference in Directing and Donating
So, what is the difference between direction and donating? Directing state tax liability to a cause allows tax payers to use a portion of what they already owe the state and direct it to their favorite cause. In addition to having the option of directing to a cause, that individual also receives a dollar-for-dollar tax credit against their liability. On the other hand, a straight donation is just that—money out of one’s pocket given to a good cause.
When you direct your tax dollars to private education in Arizona, the amount you contribute (up to the state’s legal allowance) will come back to you in the form of a dollar-for-dollar tax credit when tax returns are filed. Currently, for single filers, the state allowance for the Private Education Tax Credit is $1,135, and for married filers, it’s $2,269. Tax dollars can be directed to a variety of causes, with school tuition organizations representing a popular choice for those who are interested in putting their money toward quality, Catholic education for Arizona families and kids.
Families can control where a portion of their tax money goes. For those who are interested in contributing to the education of the state’s youth – and thus the future – contributing to an STO is a great way to make a difference.
For more information on directing your owed tax credit, visit Catholic Education Arizona today!