I get a lot of questions about how this actually works. A tax credit is better than a deduction because it actually lowers the amount of money you owe on your taxes. A tax deduction simply lowers your taxable income which is beneficial but not as beneficial as a tax credit.
Most employers deduct some amount of money out of each paycheck for taxes. You are settling what you actually owe the State when you do file for your taxes by April 15th. Some people think the tax credit won't help because they always get money back anyways. If you look a little closer, in most cases, you will get more money back by innvolving yourself in a program like this. This is because what you owe to the State becomes less.
Here are some hypothetical examples:
Scenario 1 - A Family of Four
Total combined income
$40,000
Taxes for the year
$474
Tuition tax contribution
$474
Total taxes after contribution
$0
Scenario 2 - A Family of Four
Total combined income
$80,000
Taxes for the year
$1,777
Tuition tax contribution
$1000
Total taxes after contribution
$777
SUPPORT A STUDENT AT NO COST TO YOU!!!
We are truly grateful our children have been able to receive a Christ-centered education because of generous Arizona state tax payers who direct their state income taxes to support education.
As a tax a payer, you will receive a dollar-for-dollar state tax credit for every dollar contributed to our much needed funding (up to $500 for singles, and $1000 if married filing jointly). This also qualifies as a charitable deduction on your Federal Income Tax Return.
The following examples illustrate how the Arizona Tuition Tax Credit works, and why your tax credit contributions can help our family…at no cost to you!
· Most people have taxes deducted through payroll deductions. Anything paid to the State over and above taxes owed will increase the size your tax return.
· The program works in addition to the public school extracurricular activities and work poor tax credit.
· The law changed this year allowing you up to April 15th to donate for the 2010 tax year. I recommend determining your tax liability and to see what the actual and maximum benefit to you will be and donating just prior to doing your taxes. Let me know if you need a reminder phone call at a certain date!
To help, all you need to do is the following:
1. Determine the amount of tax dollars you want to redirect.
2. Fill out the attached form and recommend one of our children for a scholarship
Caleb, Josiah, Elaina, or Abner Ingegneri at Gilbert Christian School
3. Claim on your tax return!
ACSTO will mail you a receipt documenting the amount you gave. If you have further questions, you may reach us at 480-495-3501. We appreciate your consideration in supporting our family and Christian education. For more information about the statute you can also visit http://www.acsto.com/.
REMEMBER WHEN YOU DONATE TO SPECIFY CALEB, JOSIAH, OR ELAINA OR ABNER AT GILBERT CHRISTIAN SCHOOLS . NEW FOR 2010 TAX YEAR. YOU HAVE UNTIL APRIL 15TH TO DONATE.
As a tax a payer, you will receive a dollar-for-dollar state tax credit for every dollar contributed to our much needed funding (up to $500 for singles, and $1000 if married filing jointly). This also qualifies as a charitable deduction on your Federal Income Tax Return.
The following examples illustrate how the Arizona Tuition Tax Credit works, and why your tax credit contributions can help our family…at no cost to you!
· Most people have taxes deducted through payroll deductions. Anything paid to the State over and above taxes owed will increase the size your tax return.
· The program works in addition to the public school extracurricular activities and work poor tax credit.
· The law changed this year allowing you up to April 15th to donate for the 2010 tax year. I recommend determining your tax liability and to see what the actual and maximum benefit to you will be and donating just prior to doing your taxes. Let me know if you need a reminder phone call at a certain date!
To help, all you need to do is the following:
1. Determine the amount of tax dollars you want to redirect.
2. Fill out the attached form and recommend one of our children for a scholarship
Caleb, Josiah, Elaina, or Abner Ingegneri at Gilbert Christian School
3. Claim on your tax return!
ACSTO will mail you a receipt documenting the amount you gave. If you have further questions, you may reach us at 480-495-3501. We appreciate your consideration in supporting our family and Christian education. For more information about the statute you can also visit http://www.acsto.com/.
REMEMBER WHEN YOU DONATE TO SPECIFY CALEB, JOSIAH, OR ELAINA OR ABNER AT GILBERT CHRISTIAN SCHOOLS . NEW FOR 2010 TAX YEAR. YOU HAVE UNTIL APRIL 15TH TO DONATE.
Sunday, December 28, 2008
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