What is the tuition tax credit?
In 1998, the State Legislature of Arizona passed House Bill 2074, the Tuition Tax Credit Law. Arizona state law allows Arizona tax payers to receive a dollar for dollar tax credit for contributions made to the Christ Lutheran School Foundation. Married filing jointly can contribute up to $1000 annually, and all others up to $500 per year. The money donated toward a parochial school can only be used for tuition aid. How Does the Tax Payer Benefit? Tax payers will receive a dollar for dollar tax credit and contribute much needed funding to parochial schools. The contribution can also be used as a deduction on Federal Income Tax returns. For example, a married couple who contributes $1000 to the Foundation and owes $0 in state taxes will receive a $1000 tax refund from the Arizona Department of Revenue. If that same couple contributes $1000 to the Foundation and has a tax liability of $500 they would receive a $500 credit against this liability and a refund check in the amount of $500 fro
A. South Carolina Code Section 12-6-3385 provides a refundable individual income tax credit for tuition paid to an institution of higher learning. The credit for each taxable year is equal to 25% of the tuition paid, not to exceed $850 for a student attending a 4-year institution or $350 for a student attending a 2-year institution. The credit may be claimed by the student paying the tuition or by an individual paying the tuition who is eligible to claim the student as a dependent on his federal income tax return, whoever actually paid the tuition. It may be claimed for no more than 4 consecutive years after the student enrolls in an eligible institution. See SC Revenue Advisory Bulletin #00-1 for more information about the tuition tax credit. Caution: The requirements and provisions differ from those governing the federal tuition tax credits.
A.R.S. 43-1089, The Tuition Tax Credit Law, allows Arizona taxpayers to receive a dollar-for-dollar tax credit for contributions made to qualified school tuition organizations like the Valley Lutheran Scholarship Organization. Beginning in 2006, married couples filing a joint income tax return may contribute up to $1000 annually, married filing separately and all other Arizona tax payers may contribute up to $500 each annually. What are the Benefits Taxpayers will receive a dollar-for-dollar tax credit on Arizona Income Tax. Donations are also eligible to be claimed as a deduction on Federal Income Tax returns. Students who would otherwise be unable to afford Valley Lutheran High School or Martin Luther School can apply for tuition assistance from the Valley Lutheran Scholarship Organization. Your gift will help provide deserving students with a quality Christian education.
