Tuition Tax Credit FAQ
What is the private school tuition tax credit?
Arizona has provided taxpayers with a way of directing their tax dollars to give its children a unique opportunity to obtain the individual instruction they need from a private educational location.
All Arizona taxpayers have the ability to contribute to a School Tuition Organization (STO) and receive a dollar-for-dollar tax credit when they file their Arizona state taxes. Pappas Kids Schoolhouse Foundation is a certified, state-approved STO that uses your tax credit contribution to provide private school scholarships, in turn giving hope and opportunity to homeless, at-risk and underprivileged children.
For 2016, married taxpayers filing jointly can give up to $2,173. Individual taxpayers can give up to $1,087.
To give quickly and securely online click here.
For more information from the Arizona Department of Revenue and the appropriate tax forms, click here.
For details on the Corporate Tuition Tax Credit Program and how Pappas Kids Schoolhouse Foundation can help your business take advantage of the opportunities available, click here.
For more details from the Department Of Revenue regarding Corporate Tuition Tax Credits, click here.
How do I know if I pay state income taxes?
Everyone pays state income taxes unless you are taking a loss or don’t have earned income. Even if you receive a refund, you are paying state income taxes.
Take a look at your last year’s tax return to determine how much you pay in state income taxes. This will give you an idea of the amount you can give this year. Any amount under the current maximums will receive a dollar for dollar state income tax credit.
How much can I give?
You can redirect any portion of your tax liability (what the state collects from you or income taxes) up to certain maximums:
— single filer 2016: $1,087
— married filer 2016: $2,173
Can I take advantage of both the public and private school tax credits?
Yes! This tax credit is in addition to the public school extracurricular tax credit, the qualified charitable organization tax credit and the military family relief fund.
You can participate in all four tax credit programs!
May I contribute online?
Yes. To give quickly and securely online click here.
Once your contribution is made online, you’ll receive an email confirmation that the transaction has gone through. By the end of January, a tax record receipt will be sent to you directly.
How are scholarship recipients selected?
Any student entering one of the 492 Arizona private schools (K-12) each year is eligible to complete scholarship application. The primary criteria for awarding scholarships is financial need. Students must qualify to participate in the Federal free or reduced lunch’s program.
Families must complete the Pappas Kids application and meet the income and a minimum 2.5 grade point average requirements. Scholarships are given on a first-come, first-serve basis until all funds are committed.
Pappas Kids Schoolhouse Foundation strives to assist as many students as possible.
Can I designate my donation to Pappas Kids Schoolhouse Foundation to benefit a particular student?
No, all contributions to Pappas Kids are distributed to students on a first-come, first-served basis. All scholarship recipients must meet income guidelines and complete an application.
Further, a school tuition organization cannot award, restrict or reserve scholarships solely on the basis of donor recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.
Which private schools participate in the Pappas Kids scholarship program?
Families are able to choose any private school in Arizona. Pappas Kids currently works with schools statewide.
How do I apply for a scholarship for my child?
Pappas Kids Schoolhouse Foundation applications are only available online from March 1st until June 1st of each year. Applications can be found by clicking here.
How does Pappas Kids Schoolhouse Foundation distribute the tax credit contributions collected to students?
In Tax Year 2015, Pappas Kids collected $814,139 through tax credit donations. By June 30 2016, 535 student awards will be made totaling $787,850. These awards will be made to 33 different private schools throughout Arizona. The remaining funds will be used to support our “No Barriers For Education” program , “Into The Future” program and operational costs. In the 2016 school year Pappas will provide more than 600 fully supplied backpacks to students in need throughout Arizona. This additional support is awarded through our “No Barriers For Education” program. Additionally, Pappas Kids will award eight “Into The Future” college scholarships to students previously supported through our various programs.
In Tax Year 2014, Pappas Kids Schoolhouse Foundation collected $644,630 through tax credit donations. $612,300 was distributed directly to 427 students through our scholarship tuition program, $6,698.81 was distributed to college students through our “Into the Future” program and $11,361.11 was distributed to students and schools for extracurricular activities, school supplies, holiday support and after school program assistance through our ‘No Barriers” program. The remaining funds made this all happen by supporting the operations of the foundation.
If you would like to check out our Federal 990 form for tax reporting click here.
If you would like to see how we perform in the State of Arizona, this is an interesting report “Private School Tuition Organization Income Tax Credits in Arizona – Summary Of Activity: FY 2014”. Click here to view.
Thank you so much for your continued support!