The good news. If you have a state tax liability in 2008, then you can control where a portion of your tax money will be spent. Talk to your accountant and/or spouse if you are not sure.
The not so good news. You need to make a donation before December 31st for $500 per taxpayer (assuming you have a tax liability of $500 per taxpayer). Then you will get 'paid back' with a 'dollar for dollar tax credit' in April of 2009.
Are you wondering, "How much may I give?"
A single person may give up to $500, assuming they have a tax liability of at least $500. A married couple may give up to $1000, assuming they have a tax liability of at least $1000. If your Federal Tax Liability is less than $500 per taxpayer, then you can donate an amount less than$500. So if you think your tax liability is going to be $400, then you could donate $350 to be safe yet still very helpful. It is important to get involved with how your taxes are spent, when you have the opportunity to do so.
$500 per taxpayer or $1000 per couple
So you have to have $500 (per taxpayer) today to save $500 (per taxpayer) in April. If you do this I will be very, very thankful. Couples may donate up to $1000 since they consist of 2 taxpayers.
Dollar for Dollar Tax Credit
A "dollar for dollar tax credit" means that you will literally save the exact amount that you donate (up to $500 per taxpayer, assuming you have a tax liability of at least $500 per taxpayer)
Benefit
Besides getting 100% of the donation back as a tax credit, your taxable federal income is reduced by the donation. So, if you are in the 28% Federal Tax bracket, the $1000 donation towards Kaylie's tuition will cost you <$280.00> (i.e. LESS than nothing!). In other words, you will save $280 in taxes beyond the tax credit.
In essence, you are gaining a tax savings and control over allocating a portion of your taxes. You are directing some of your tax money to a local Tucson family going to a local Tucson school instead of it going to Phoenix for the state government to spend.
Getting Started
The steps are easier than you may think.
It only takes a few minutes. To start, simply visit https://secure.acsto.org/donate_online.aspx by December 31st and choose the school "Cornerstone Christian Academy, Tucson" from the Recommendation drop down. Then please type my daughter's name, Kaylie Marie Barr, into the Student(s) field. Continue to complete the form by filling in your information, such as your name, address, credit card information, etc.
Step 2: Click Continue.
Step 3: Check the box and click Submit.
Thank you so much for taking the time and energy to help. We truly appreciate you taking the time to direct a portion of your tax money to do what you want.
Here are a few a pictures of my wonderful, hard working and just fabulous daughter Kaylie Barr:
To get started, just click here.
Cornerstone Christian Academy
My daughter is blessed to have the opportunity to go to Cornerstone Christian Academy. My wife, Heather and I are also very blessed to be apart of this wonderful school. My daughter's teacher is Mrs. Walick and she is absolutely the best at what she does.
This is our first year at Cornerstone and the moms in my daughter's class threw a surprise baby shower for my wife. We have been welcomed into this wonderful school by the parents, students, teachers and staff, beyond our expectations. We are very excited to be apart of this school and look forward to our other children (Jocelyn Joy who is 3 and Jacob Kenneth who is just a few days old) going here when they get to Kindergarten.
Some of the things that I find very important in education is absolute honesty. And like other Christian schools, the students learn the truth about creation and evolution while also learning math, reading, writing and comprehension. My daughter recently took home an Excellent ribbon in the ACSI District Speech Meet.
If you would like to help my daughter continue to attend this incredible school with excellent academics with a Christian education, please click here.
FYI: This blog has been updated and revised to try and make it as accurate and helpful as possible, after getting excellent feedback :)
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1 comment:
I love the way you presented the tax credit info. I wish more folks would understand how easy it is to use Arizona Tax Credits to support local private schools, local public schools, and local agencies that support the working poor (like the Salvation Army). Yes, you can do all three - and it costs LESS THAN NOTHING!
A couple things to add or update:
1) The private school credit is $500 per person, so only a couple could donate $1000.
2) Besides getting 100% of the donation back as a tax credit, our taxable federal income is reduced by the donation.
So, if we are in 28% Fed Tax bracket, the $1000 donation towards Kaylie's tuition will cost me <$280.00> (i.e. LESS than nothing!).
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