Arizona State Tax Credit

Make a Tax-Credit Gift and PROVIDE 100% ACCESS for low-income families to the enriching, child-centered education at IDEA School. And, your gift ensures that ALL families can access the IDEA School.

Tax Credit donations to support IDEA School’s Low-Income Scholarships are made through IBE (Institute for Better Education), a state-regulated, non-profit School Tuition Organization (STO).  See below for details and click on “Take the Credit!” to access IBE’s secure online donation page. The whole process takes about 5 minutes! 

When completing your donation, make sure you recommend the funds go to IDEA School by choosing us from the drop-down menu of schools.  When complete, print the automatically generated receipt from IBE and take the dollar-for-dollar credit when you file. It’s that simple!

(You can also make your secure donation by simply calling IBE, at 520-512-5438 or stopping by their office at 921 N. Swan Road in Tucson if you’d prefer. Let them know it’s for the IDEA School.)

Visit the IBE Website

Click above to support student scholarships at IDEA School through the school  tuition organization IBE – Institute for Better Education. 

More than 9 out of 10 IDEA School students attend on need-based financial aid.
Your support makes it possible. Thank you!

 

View IDEA School’s story, beginning at 1:17 in this video from IBE, about the impact of your gift today. 

Thank you for helping us ensure that the IDEA School remains accessible to all.
We can’t do this without you!

The Basics

Tax credit gifts are used exclusively for tuition assistance for families in need, and are critical to helping us provide this rich educational experience to all interested students and families, regardless of income.

  • For the 2023 Tax Year, single taxpayers may contribute up to $1,307 as a dollar-for-dollar tax credit donation recommended to the IDEA School (This includes both the “Original Individual” donation and “Plus” donation — see IBE website for details).
  • Married couples filing jointly may contribute up to $2,609 as a dollar-for-dollar tax credit.
  • Tax-credit donations to support IDEA School scholarships must be made through the Institute for Better Education (IBE), a state-regulated School Tuition Organization that is also a 501(c)(3) nonprofit organization.
  • As the donor, you may recommend your donation go to the IDEA School and/or to a specific student at the IDEA School.  Check with the student’s parent or guardian. If he or she is not “Plus-eligible,” you may still support him/her with your “Original” Tax Credit donation. You can support additional low-income scholars at IDEA School with your “Plus” Tax Credit donation, by choosing IDEA School from the drop-down menu of schools.
  • You take the amount of your donation as a dollar-for-dollar tax credit when you file your state tax return. It will either reduce what you owe in state taxes or increase your state refund, dollar-for-dollar.

Frequently Asked Questions

What is the School Tuition Tax Credit?
Arizona Revised Statutes (ARS) 43-1089.01 provides a credit against state income tax obligations for Arizona taxpayers who make a contribution to a certified School Tuition Organization (such as IBE).  This contribution will be credited dollar-for-dollar against your Arizona state income tax liability, up to the limits noted above. By law, the STO must provide 90% of your donation in direct scholarship aid to schools/students. IBE provides 92% of each donation to the recommended school/student in direct scholarship aid.

How does a tax credit differ from a tax deduction?
A credit reduces the Arizona income taxes you owe dollar-for-dollar, while a deduction reduces the taxable income upon which the taxes are calculated.  A tax credit is better for your bottom line.

How do I get my tax credit?
A tax credit is subtracted directly from the income tax you owe the state for the year, when you file.
  For example, if your state income tax obligation is $1,200 for the year, and you make an $1,100 tax credit donation to IBE for the IDEA School, you’ll owe only the remaining $100 balance in Arizona State income tax for the year. If you’ve been withholding taxes along the way and have paid more than $100 in state income taxes through your withholdings, the tax credit gift will increase your state refund dollar for dollar!

See the video on IBE’s homepage called “Tax Credit Presentation” for more examples of how you receive your tax credit donation back, dollar-for-dollar, when you file. 

May I also make a tax credit contribution to a public school?
Yes, please do! We encourage you to support a public school of your choice with a Public School Tax Credit donation made directly to that school and to support a worthy nonprofit helping Arizona families with the Charitable Organization Tax Credit as well (formerly known as the Working Poor Tax Credit).  Arizona law allows you to take all three.

Where can I obtain more information about the Arizona tuition tax credit program?
Please go to the Arizona Department of Revenue website or call DOR toll free at (800) 325-4090 for more info.

Questions?

Please call or text IDEA School (520) 589-4933 with any questions or if you need help making a tax credit gift.  

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IMPORTANT NOTICE: By law, a school tuition organization cannot award, restrict or reserve scholarships based solely on a donor’s recommendation. Your recommendation, plus our verification of need, allows the scholarship to go through.

A taxpayer may not claim a tax credit for his/her own dependent, and may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.