Arizona tax payers can donate money to a qualifying student tuition organization (STO) and receive a dollar for dollar tax credit reimbursement from the state up to a predetermined amount. Taxpayers can donate through April 18, 2017 for the 2016 tax credit season. To donate to the individual tax credit program original fund and receive a 2016 tax credit, donors can give up to $1,090 for married couples filing jointly or $545 for singles.
As of 2012, tax payers wishing to make additional donations and receive their dollar for dollar return can donate an additional $1083 if married filing jointly or $542 for single filer for tax year 2016. To donate to the overflow fund, a donor must first maximize their donation to the original tax credit fund.
To donate to both the original and overflow fund, you should check your Arizona tax liability for the year before to determine what amount you are eligible to donate for full reimbursement. The maximum donation between both funds is up to $2,173 for married couples filing jointly or $1,087 for singles. Lexington Education Foundation uses at minimum, 90 percent of all donations to provide scholarships to kids with disabilities in order to help them receive the K-12 education they deserve.
The Individual tax credit / Overflow / Plus tax credit can be recommended toward a specific student and/or a specific school. Any Arizona tax payer with state tax liability is eligible to donate. Many families receive donations from relatives, friends, neighbors and coworkers, recommending their children. Please contact firstname.lastname@example.org for questions.
Funding from the individual tax credit program are awarded on a first come first serve bases. Students can receive awards up to their full tuition costs for the current school year. Students can receive multiple scholarships from one or more STO but awards cannot equal more than the student’s tuition.
Donors can recommend anyone who is not their child or a dependent. Parents cannot plan to donate to each other’s children as law prohibits this. The law states: “A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.” Recommendations are accepted however the Lexington Education Foundation board retains complete discretion regarding all awarded scholarships.