| What are Tax Credits?
Tax credit contributions are a cost-free method to help fund student tuition. By using Arizona State Tax Credits, you can redirect your state taxes to help fund a student’s tuition.
All tax credits contributions must go through a Student Tuition Organization (STO). These STOs collect contributions and distribute them in the form of individual scholarships. We are partnered with several STOs, but we recommend submitting contributions to STO4KIDZ. You are welcome to use another STO, but reach out to them first to make sure that we are a registered school.
You can watch this video or follow the instructions below to make a tax credit contribution to LeadAZ Private School.
| How to Make a Tax Credit Contribution
- If possible, find how much state taxes you will pay for the year 2023.
- Through contributions you are able to contribute up to $2,609 for couples and $1,307 for single and receive a tax credit for your state taxes dollar for dollar (meaning you get all your money back). This is in addition to public/charter school tax credits.
- Keep in mind that you cannot be credited back more money than you owe in state taxes. The deadline for 2023 contribution is April 15, 2024.
- You will receive your reimbursement when you file your taxes and receive your tax return. Many people wait until tax season to contribute.
- To contribute go to https://sto4kidz.org/donors/individual/contribute-now/. Fill out the individual form and pick “LEADAZ PRIVATE SCHOOL” for who the contribution is for. You will then have to make a payment and receive a receipt as proof of contribution for tax purposes. This is through a verified partner of ours that handles all tax implications for our school’s tax contributions (STO4Kidz). If you are donating because a student/family reached out to you, make sure to include that student’s name in the recommended space.
- If you are donating the full amount, you can select “Filing Jointly/Married” or “Filing Singly”
- If you are not contributing the full amount, you can input the amount you want as an “other amount”.
- You can skip section B charitable donation section; unless you know this is usable for yourself.
- Email us if you have any questions about the amounts.
- After payment they will email you a receipt within 2 weeks which is for your tax records or tax professional. Forward that receipt to Admin@LeadAZ.org so the school knows you donated and can ensure that no contributions are lost.
- Turbo Tax automatically asks for tax credits, so it is easy to input. All tax professional should know how to file this pretty easily. Please check with them beforehand if you have any doubts. Please let me know if you have any issues. We have cleared it with multiple tax professionals.
| How to Contribute as a Business
Arizona businesses can also make fully refundable tax credit contributions. There are no contribution limits for business (if a business pays $10,000 in taxes, they can contribute $10,000). There are only a few requirements:
- Only C-Corporations and S-Corporations may participate.
- S-Corporations must make a minimum contribution of $5,000.
- Business must first pledge (without a financial commitment). If the state accepts their pledge, they will receive approval to make the contribution.
- All funds from corporate contributions will only go to students with financial needs