Tax Credit Donation

Thank you for redirecting your state tax dollars to support progressive education in Tucson. Because of you, our students are developing their skills as compassionate, intelligent learners and active, engaged citizens. And thanks to you, ALL families in need can benefit!

For the 2018 tax year, individual Arizona taxpayers may donate up to $1,107 as a dollar-for-dollar tax credit donation. Married couples filing jointly may donate up to $2,213.  When you file your 2018 state taxes, you will get your donation back, dollar-for-dollar.

More than 75% of our students attend on need-based scholarships. Your support makes it possible.

Thank you for helping us change lives!

~~

Tax Credit donations to support IDEA School Scholarships are made through IBE (Institute for Better Education), a state-regulated School Tuition Organization (STO) that administers tax credit donations to private schools for need-based scholarships. See below for details and click on the “Take the Credit!” icon to access IBE’s secure online donation page.

When completing your donation, make sure you recommend the funds go to IDEA School by choosing us from the drop-down menu of schools. All funds recommended to IDEA School support scholarships for students in need.

Then print the receipt and take the credit on your taxes. It’s that simple!

idea_school_credit_button

Click above to make your donation to the IDEA School through the school  tuition organization IBE.  

IBE sends you a donation receipt immediately. Put it with your tax documents and take the dollar-for-dollar credit when you file.

NOTE: IBE shares the following information with the school upon our request: name(s) and address of the donor and the amount and date of your gift. We request this information monthly from IBE during tax season so we can also thank you for your gift!

The Basics

Tax credit donations are used exclusively for tuition assistance, and are critical to helping us provide this rich educational experience to all interested students and families, regardless of income.

  • For the 2018 Tax Year, single taxpayers may contribute up to $1,107 as a dollar-for-dollar tax credit contribution (This includes both the “original” donation and “plus/overflow” donation — see IBE website for details). Married couples filing jointly may contribute up to $2,213.
  • Tax credit donations to support IDEA School scholarships must be made through the Institute for Better Education (IBE), a state-regulated school tuition organization that is also a 501(c)(3) nonprofit. In addition to the state tax credit, your donation also is deductible on your federal taxes. Please check with your tax professional for details.

 

  • As the donor, you may recommend your donation go to the IDEA School and/or to a specific student at the IDEA School.  Check with the student’s parent(s). If he or she is not “Plus”-eligible, you may still support him/her with your “Original” Tax Credit donation. You can support additional low-income scholarships at IDEA School with your “Plus”/”Switcher” Tax Credit donation, by choosing IDEA School from the drop-down menu.
  • You take the amount of your donation as a dollar-for-dollar tax credit when you file your state tax return. It will either reduce what you owe or increase your state refund dollar-for-dollar.  See this video for a great explanation of how it works.

Thank you for redirecting your Arizona income tax to support progressive education in Tucson, and the ability of ALL families to participate!

Frequently Asked Questions

What is the School Tuition Tax Credit?
Arizona Revised Statutes (ARS) 43-1089.01 provides a credit against state income tax obligations for Arizona taxpayers who make a contribution to a certified School Tuition Organization (such as IBE).  This contribution will be credited dollar-for-dollar against your Arizona state income tax liability, up to the limits noted above. By law, the STO must provide at least 90% of your donation in direct scholarship aid to schools/students. IBE provides 92% of all donations to the school/student.

How does a tax credit differ from a tax deduction?
A credit reduces the Arizona income taxes you owe dollar-for-dollar, while a deduction reduces the taxable income upon which the taxes are calculated.  A tax credit is better for your bottom line.

How do I get my tax credit?
A tax credit is subtracted directly from the income tax you owe the state. The credit is taken directly off of your state tax return when you file. For example, if your state income tax obligation is $1,200 for the year, and you make a $1,000 tax credit donation to IBE for the IDEA School, you’ll owe only the $200 balance in Arizona State taxes for the year. Tax Credit Donations can also increase your Refund.

For a great visual of how this all works, check out this video.

May I also make a tax credit contribution to a public school?
Yes, please do! We encourage you to support a public school of your choice with a Public School Tax Credit donation made directly to that school, and to support a worthy nonprofit helping Arizona families with the Charitable Organization Tax Credit as well (formerly known as the Working Poor Tax Credit).  Arizona law allows you to take all three.

Where can I obtain more information about the Arizona tuition tax credit program?
Please go to the Arizona Department of Revenue website or call DOR toll free at (800) 325-4090 for more info.

Questions?

Please contact IDEA School C0-Director David Higuera at (520) 589-4933 with any questions or if you need help making your donation.  He’d be happy to help you!

* * *

IMPORTANT NOTICE: A school tuition organization cannot award, restrict or reserve scholarships based solely on a donor’s recommendation.

A taxpayer may not claim a tax credit for his/her own dependent, and may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.