Remember - if you do not participate in this program, your tax dollars that you could have kept in your community will be used by other communities.
As an Arizona taxpayer, you can put your dollars to work in your Sedona schools and community. Our school system is an intricate element to our community which with your help can provide an improved environment for Sedona residents and our school children. Your tax dollars that you direct to Sedona Kids Tax Credit can be used by our school district for programs that enrich our community by supporting programs such as sports, clubs, the arts, field trips, education enhancements and improved utilization of your school facilities.
Your state income tax liability will be reduced by the full amount of your contribution. If you have extra credit left over, you can carry it forward for up to five years. In addition you may also deduct the enrollment amount on Schedule A of your federal income tax. You don't have to have a child in Sedona schools to take advantage of this program to help your community.
- Example #1
- Dick and Jane have no children in school and as a couple owe $1,000 in AZ State Income taxes. They enroll in the Sedona Kids Tax Credit program $400. They will then have to pay ONLY $600 to the state.
- Example #2
- Mary had $600 withheld in AZ State taxes, but owes $500. She enrolls in the Sedona Kids Tax Credit program $200 and receives a REFUND of $300 from the State
- Example #3
- Mr. and Mrs. Stone live in Sedona and are retired. They have no AZ income taxes due, but contribute $400 to the Sedona Kids Tax Credit program and take this contribution as a charitable deduction on their Federal tax return!
- Example #4
- Sally, a single tax payer, owes $100 in state income taxes and enrolls in the Sedona Kids Tax Credit program $100 to the program. When she prepares her taxes in the spring, she owes nothing to the State because her tax credit donation reduced her liability to zero. If Sally only enrolled $20? She would end up owing $80 to the State of which very little would find its way back to Sedona. Now if she enrolled $200, she would owe nothing this year and still get another $100 credit for next year.
- Single individuals (or married filing separately) can receive a tax credit of up to $200.
- Married couples filing a joint return can receive a tax credit of up to $400.
For specific questions regarding your individual circumstances, consult your tax advisor.