Posted by Randall A Reinwasser on Monday, December 27, 2010
This is the easiest $100 you'll ever make and you'll feel good about it too! If you're an Arizona taxpayer, you can donate up to $400 ($200 for individuals) to any public school and you can take that donation as a tax credit against your Arizona state taxes. That means you if owe $1,000 in state taxes you can deduct $400 off your tab.
Even better, this donation is a deduction for federal tax purposes. So, if your federal tax rate is 30% you can deduct $120 ($400 X 30%) from your federal taxes. This is your opportunity to pretend you're a big bank and get free money from the government! Moreover, you'll help out students at your local school (or any school you choose) by funding their extracurricular activities. The kinds of programs you can help fund range from sports and band fees to lab sciences and art projects.
Don't delay, the deadline to file the credit for the taxable year is December 31st. Contact a school for more information.