Q: What is Arizona's Private School Tax Credit?
You can reallocate a portion of your tax dollars to help children in your community
obtain a quality education. Since 1998, Arizona law provides a tax credit for contributions made
to school tuition organizations, like JETCO, which provide scholarships to private schools. When you send
your contribution to JETCO (up to the maximum amount), the State will provide you with a tax credit that
reduces your state tax liability by the amount you contribute. This is a wonderful way to help students
in financial need at Jewish day schools at no additional cost to you. (top)
Q: How does this tax credit work?
When you contribute to JETCO (up to $1,000 for couples, $500 for individuals), the amount you owe in state
taxes is reduced DOLLAR FOR DOLLAR by the amount of your contribution. Depending on your tax liability, you will
either receive the money back in a refund, lower the additional amount you owe to the state, or carry over
your tax credit to the following year(s). Your contribution to JETCO is money you would have to pay in
taxes anyway, so it is not an out-of-pocket donation. You are basically redirecting your tax dollars to
support the private schools of your choice. (top)
Q: Who can make a contribution to earn the tax credit?
A: You can! Anyone who pays Arizona state taxes is eligible. (top)
Q: Which schools are JETCO beneficiary schools?
A: Congregation Anshei Israel Esther B. Feldman Kindergarten and Tucson Hebrew Academy. (top)
Q: How much of my contribution goes for scholarships?
A: At least 90% of all contributions collected each year go toward scholarships for students in financial need. (top)
Q: What is the maximum amount I can contribute in a year?
A: $1,000 is the maximum allowable tax credit for married couples filing jointly. $500 is the maximum for
individual filers (single heads of households or married couples filing separately). (top)
Q: May we contribute less than $1,000?
A: Yes, lesser contributions are always welcome. (top)
Q: What if I contribute more than my tax liability?
A: Once your tax liability becomes zero, any additional amount of your contribution will be carried over
as a tax credit for up to five (5) years. (top)
Q: Do I have to have children enrolled in one of the beneficiary schools?
A: No. Any Arizona state taxpayer can make a contribution to JETCO for a tax credit. (top)
Q: How do I apply for a scholarship for my child to attend one of the schools?
A: You may obtain a standardized financial aid packet from the school itself. Scholarships are awarded
based solely on financial need. (top)
Q: Can my contribution to JETCO be designated for a specific child or school?
A: No. All contributions go into one fund. The monies are later distributed to JETCO's two
beneficiary schools to provide scholarships to students in financial need. (top)
Q: Where can I find more information about Arizona's Private School Tax Credit?
A: You can learn more about Arizona's Private School Tax Credit (ARS 43-1089) by visiting the Arizona
Department of Revenue's website at www.revenue.state.az.us. (top)
Q: Is my contribution also eligible for a federal income tax deduction?
A: JETCO is a 501(c) 3 charitable organization, EIN 86-0953552. Please consult your tax adviser to
find out how this deduction may apply to you. (top)
Q: How do I contribute to JETCO to earn my tax credit?
A: Making a contribution and getting your tax credit is easy! You can contribute now and either
pay immediately, in monthly installments, or after December 1st. After the final payment of your gift, you will
receive a receipt letter to use with Form 323 when you file your state income taxes. (top)
Q: Which Arizona state income tax form do I use to claim my tax credit?
A: Form 323. It is available from the Arizona Department of Revenue. (top)
Q: Can I also make contributions to earn other Arizona tax credits as well?
A: Yes. You can also make contributions to earn Arizona public school and working poor tax credits.
The maximum allowable amount for each is $400 for couples and $200 for individuals. Two other agencies
in Tucson Jewish community that benefit from tax credits are Handmaker Jewish Services for the Aging
(Hillel Levy at 322-3632) and Jewish Family and Children Service of Southern Arizona (Moniqua Lane
at 795-0300, ext. 2283). (top)
Q: What is a matching gift?
A: Certain companies will match the contribution that their employees make to then double the amount of funds available
for scholarships. Please ask your employer if they have a matching gifts program. The program will provide
you with the proper forms and instructions. (top)
Q: Whom do I contact if I have additional questions?
A: Please feel free to call Kris Andersen at (520) 647-8442 if you have any questions. (top)
