What is a Tax Credit?

A tax credit is money that taxpayers receive back dollar-for-dollar from the state for their donation, which goes against what they would otherwise owe as a state tax payment.

If you're an Arizona taxpayer, you can make a donation to School Choice Arizona and receive a dollar-for-dollar state tax credit in return!

At the end of the year, if you typically get a refund, you’ll get a bigger refund. If you typically owe, you’ll owe less.

A tax credit directly reduces your state tax liability (a.k.a. the tax you pay). For example, if your tax liability (obligation) is $1,000, and you make a $750 donation to School Choice Arizona, your liability will be reduced by $750—meaning that your tax liability will only be $250! If you usually receive a refund, a tax credit makes it bigger—it is to your advantage to participate in this program.

You can donate up until Tax Day or before you file your state taxes (whichever of these comes first) and still claim the credit for the previous tax year. If you are filing an extension, donations must be made by Tax Day to claim the tax credit for the prior tax year.