Tax Credit Q & A

Who can participate?

Anyone who pays Arizona state income taxes may choose to participate.

Why should I participate?

This is a great opportunity to choose how and where your tax dollars are used. By participating in this program, you know that your money will return to Flagstaff to benefit people in your community.

Will my “take home pay” change?

No. Most employees choose to continue with the same “state withholding” percentage currently being withheld by employer.

Can I recommend a specific school or student for a scholarship?

With the Public School Tax Credit, the payment goes directly to the school and a specific student can not be named. However with the Private School Tax Credit a specific school and/or a specific student can be recommended to receive the funds. The student can not be your immediate family. Our preference is that you simply recommend FCCS as your school of choice so scholarships can be awarded to families with the greatest need.

Is this considered a “tax deductible gift/donation”?

No. A “tax credit” is different in that it is state tax money owed anyway. These programs are dollar-for-dollar tax credits, not a tax deduction. Charitable Donations to FCCS or other 501(c)3 not-for-profits are claimed separately.

May I participate in more than one one Tax Credit Program?

Yes! You can receive dollar-for-dollar tax credits for both the AZ Charitable Contribution Tax Credit and the Arizona Public School Tax Credit. The working poor or charitable tax credit is different from the school tax credits. You can donate up to $800 to the AZ Charitable Tax Credit (working poor), and to public school extra curricular activities. Combine both for significant savings!

Where do I make payments for these Tax Credit Programs?

The Credit for Donations made to Qualifying Charitable Organizations & Public School Tax Credit Programs can be made online at the organization website (if available) or at the organizations location. Private School payments are made to a Student Tuition Organization (STO) and then the money is disbursed to the designated private school. We recommend payments to the Private School Tax Credit Program be made online to Institute for Better Education (IBE) www.ibescholarships.org.

Can I make payments on my tax credit donation?

Yes, partial payments on your tax credit donation can be made throughout the year to the organization or STO, for Private School Program, with the end totaling the maximum amount. With the Private School Program employers can also have donations deducted automatically with a Payroll Withholdings Form. Contact IBE (520-512-5438) or FCCS (928-522-5968) for more information.

IMPORTANT: This web page is intended to provide general program info only. Please consult your tax professional for details and financial advice.