Please see letter below that outlines changes made to law. Most notable: you can now donate through April 15th so very little time to have to float any money!
Dear ACSTO Donors, Scholarship Applicants, & Friends:
The Legislature has passed and Gov. Brewer has signed three bills regarding the scholarship tax credits. I thought you might be interested in the major provisions. They include the following:
SB 1274 sponsored by Sen. Al Melvin, Tucson, allows donations made through April 15 to count as being made during the prior calendar year at the election of the donor.
HB 2664 sponsored by Rep. Rick Murphy, Glendale, implements the work of the House Ad Hoc Committee and includes more than 20 changes in the law relative to the operation of school tuition organizations (STO). Among the major changes in this bill are the following:
Authorization of the Arizona Department of Revenue (ADOR) to certify or decertify STOs relative to their compliance with the applicable law.
Provides annual increases in the maximum donation per the Consumer Price Index.
Prohibits donor “swaps” and requires STOs to widely communicate this prohibition.
Confirms that recommendations by donors are permitted, but provides they cannot be the sole factor in making award decisions and requires that financial need be a factor in the award process.
Requires STOs to report the number and aggregate amount of scholarships in categories which reflect the families' financial status compared to federal free or reduced priced lunch income standards. This change has precipitated ACSTO changing its application form to no longer require pages 1 and 2 of the applicant’s federal income tax return but rather require a Financial Information Form that provides all of the information necessary to assess the applicant’s financial category.
Requires an independent CPA financial audit or review be provided to ADOR depending on the size of the STO.
Made other technical changes aimed at increasing overall STO transparency and accountability.
HB 2663, also sponsored by Rep. Murphy, basically conformed the provisions of HB 2664 dealing with the individual scholarship tax credit to STOs dealing with the corporate scholarship tax credit and Lexie’s Law.
Rep. Debbie Lesko, Peoria, and Rep. Andy Biggs, Gilbert, also served on the Ad Hoc Committee and were instrumental in advancing these reforms through the legislative process.
The essence of these reforms is that state law is now very much similar to the operational practices that ACSTO pioneered and has faithfully followed since its inception in 1998.
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.
Wednesday, June 16, 2010
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