State of Arizona extends Tax Credit Deadline to May 17th

There is great news to share! Governor Ducey signed into law Monday, April 5^th, the ability to make 2020 tax credit donations through the new State deadline date of May 17^th! This means all Arizona taxpayers who have not filed for their 2020 state taxes will have an extra month to make 2020 tax credit donations, helping some of Arizona’s most vulnerable and at-risk children and families.  After last year when the state filing deadline was extended, but not the tax credit donation deadline, this is truly music to our ears.  J  Below is directly from the AZ Department of Revenue website:

 

2021 Tax Due Date Update ADOR Extends Income Tax Deadline to May 17, 2021

 

The State of Arizona has announced it has moved the deadline for filing and paying state individual income taxes from April 15 to May 17, 2021. Additionally, the deadline for first quarter tax year 2021 individual estimated tax payments remains April 15, 2021.

This follows the Treasury Secretary announcement that the Internal Revenue Service (IRS) has moved the deadline for 2020 federal individual income tax returns to May 17, 2021. 

The extended deadline only includes individual returns.

The new deadline means taxpayers who file and pay after the previous April 15 deadline will not be assessed late filing or late payment penalties. 

Taxpayers anticipating that they will need more time beyond the new May 17 deadline to file state individual income taxes should consider filing for an extension by submitting Arizona Form 204 by May 17. Taxpayers do not need to submit Arizona Form 204 if they have already received a federal extension from the IRS. 

Additionally, the Arizona Department of Revenue advises taxpayers they now have until May 17 to contribute to certified qualifying charitable organizations, qualifying foster care charitable organizations, school tuition organizations, and public schools to claim the tax credits on their 2020 individual income tax return.

Individuals should ensure to file accurate tax returns. Here are some key tips:

·         E-file. Electronic filing is more accurate, secure and faster.

·         Ensure all the necessary lines and forms are filled out correctly. Avoid math errors or miscalculations.

·         Don't misspell names or use two different names. 

·         Make sure key information like tax ID number, Social Security number, routing number or account number are correct in all the appropriate boxes.

·         If filing a paper return, use black ink and print on white paper.

·         Do not staple or attach anything to paper returns.

·         Don't forget to sign and date the return.

 

The Arizona Department of Revenue encourages taxpayers to file electronically, as e-filing is more efficient, more secure and refunds are processed faster than refunds from paper tax returns.

Check out the Arizona Department of Revenue’s FAQs website at https://azdor.gov/news-notices/faq-during-tax-season for information.

 

Please consider Arizona children when choosing where to put your Arizona tax money!

 

Kim

The New School Year: How State Mandates Affect Private Schools and Your Scholarships

Hello IBE Families:

We have been fielding numerous calls over the last few weeks as how the new "normal" for private school education will look when it comes to tax credit scholarships. As we all know, it is very difficult to make plans when the new “normal” changes hourly.  Governor Ducey presented a plan on July 23, 2020, entitled Open For Learning. 

We also received an email from the Arizona Department of Revenue regarding Governor Ducey’s Executive Order dated June 24, 2020:

Hello everyone,

On June 24, 2020 Governor Ducey issued Executive Order EO 2020-41 which outlined requirements for school districts and charter schools interested in adopting hybrid and distance learning options for the 2020/21 school year.   Executive Order EO 2020-44 issued by Governor Ducey on June 29, 2020 outlined the school in-person and distance learning start dates for the 2020/21 school year.  We want to provide some guidance in response to questions we have received recently regarding whether awarding School Tuition Organization (STO) scholarships will be allowable to private schools offering hybrid and distance learning instruction in the 2020/21 academic year.

 

A.R.S. §§ 43-1503 and 43-1603 require STOs to award scholarships to qualifying private schools.  Qualified private schools are defined in A.R.S. §§ 43-1501 and 43-1601.  A.R.S. §15-802(G)(3) requires private schools to provide academic instruction ‘for at least the same number of days and hours each year as a public school’.  One of the requirements listed in the June 24, 2020 Executive Order is that while offering hybrid and distance learning options, the school district or charter school are to continue operating for the required 180 days of instruction.  Also note that in the June 29, 2020 Executive Order, the Arizona Department of Education has been directed to conduct an analysis regarding the number of school days required for the 2020/21 school year. 

 

We believe STO scholarships for students to attend qualifying private schools utilizing hybrid options of instruction would be permissible (provided that all other STO eligibility criteria are also met) during the 2020/21 academic year.

 

Please remember that a student must be enrolled in the private school full-time in order to be eligible for an STO scholarship.  If a student disenrolls from a private school, the STO scholarship prerequisites will start again when the student re enrolls in a private school.  If a student separates from the private school to homeschool for a semester or the year, the student will be required to meet the applicable STO scholarship prerequisites in order to be eligible for an STO scholarship when they return to private school.

For additional information on the Governor’s Executive Order EO 2020-41, you may refer to the AZCares Flexibility and Funding for Schools and Families document.

As we shared with you back in March, we know things are continually evolving and more questions will arise over the coming months. On behalf of the Arizona Department of Revenue, we again thank you for your patience, understanding, and cooperation as we continue to navigate this public health situation.

 

Office of Economic Research & Analysis Arizona Department of Revenue

To answer a few more questions that have parents wondering about this school year:

•   Will children lose their PLUS/Switcher eligibility if they homeschool for the 1^st semester?  YES!  Whenever a child leaves their private school for any reason or for any amount of time, their tax credit scholarships eligibility starts over.  At this time, homeschooling is not an eligibility option for PLUS/Switcher or even Corporate Low-Income.  Think very carefully before you decide to homeschool for the 1^st semester of the 2020-2021 academic year as your child may never be able to obtain PLUS/Switcher eligibility again.
•   Are students who complete online work at a faster pace than in-person students still meeting the 180 days of instruction rule?  Yes, as long as the curriculum standards are the same.  The online schooling by its very nature allows for more of an “at your own pace” atmosphere.  As long as the curriculum is the same, and that meets the academic instruction requirements as listed in the AZDOR email above, then those students are still eligible to be awarded tax credit scholarships.
•  If a private school is starting either before or after whatever date the Governor deems safe, can we still receive tax credit scholarships?  Yes, as long as the private school meets the 180 day of academic instruction requirement.  If the 180 day requirement changes for public schools, it will be the same for private schools.
•  If a student moves from one private school to another private school, will all of their awarded scholarships follow them?  All Financial Need Based Scholarships (Individual, PLUS/Switcher, Corporate Low-Income) as well as any Disabled/Displaced Scholarships will not follow the student as those were typically awarded with funds that specific school received.  All Recommended Fund Scholarships will follow the student.

    If you have any questions, please feel free to reach out to our office at (520)512-5438.

      Sincerely, 

      Kimberly Kirschner

      Executive Director

    

Join Us for a Tax Credit Webinar July 27th

Corporate Tax Credit Cap Opening Soon!

Now, more than ever your corporate tax dollars are needed by Arizona children and private schools.

Help your clients receive a dollar-for-dollar tax credit that will help children with their education. A simple one-page application is available through IBE with a coordinator dedicated to making the process simple and easy to navigate for accountants and corporate taxpayers. One minute of your time can make a huge difference in the lives of children and, also, help your client save on taxes and direct their tax dollars.

In 2015, Arizona legislature passed a Bill that was signed by Governor Ducey allowing S-Corporations as well as LLCs that file taxes as an S-Corporation, to make a tax credit contribution to a qualified School Tuition Organization (STO) and receive a dollar-for-dollar tax credit. This tax credit flows through to the shareholders in a pro-rata share. This is the envy of many states.

These tax credits are for S-Corporations, C-Corporations, and insurance companies that pay premium taxes in Arizona. The Corporate cap in Arizona is just over $128 million. The cap has been met in previous years in just minutes. Last year, while it took 3 rounds to award all funds, we expect it to be another year of the cap being met in minutes. For all three rounds of last year’s Corporate donation season, IBE had all their corporate donations accepted in the top 30% and were in the #1 spot in all three rounds. This year, all Corporate donation applications must be to your chosen STO by July 5th so they may be submitted by July 6th.

Who can donate?

·         C-Corporations

·         S-Corporations

·         LLCs that file as an S-Corporation

·         Insurance companies that pay premium taxes in Arizona

Why IBE?

·         IBE had all corporate donations accepted in the top 30% to AZDOR

·         IBE had the #1 spot in all three AZDOR rounds in 2019

·         IBE works with over 290 diverse schools

·         Businesses can recommend a school(s) or designate to the most needy fund

·         IBE has a designated Corporate Program Coordinator to answer questions and help with the entire process

·         IBE has a simple process with a one-minute, one-page application

·         Pay your corporate tax liability with a credit card

Types of Programs

·         Low-Income Corporate Tax Credit Program (children from low-income families)

·         Disabled/Displaced Corporate Tax Credit Program (children with disabilities or have ever been in the Arizona Foster Care system)

Free Corporate Tax Webinar June 11th (10am) for Arizona businesses & CPAs. Call to register.

2019 Tax Credit Deadline Still April 15th, 2020

With the recent announcement from Governor Ducey’s office that our 2019 Arizona State Tax deadline has been extended to July 15, 2020, many Arizona taxpayers are wondering if this extends the deadline to make their tax credit donations.  We were informed Monday, March 23^rd, that this does NOT extend the tax credit donation deadline.  For any taxpayer who wants to direct their Arizona state tax liability to any of the four remaining tax credits allowed for 2019, they must make their donation on or before April 15, 2020.  

2019 Arizona Tax Credit Donation Deadline

–April 15, 2020

2019 Arizona State and Federal Tax Filing Deadline - July 15, 2020

This would include:  

 Private School Tax Credits 

  Public School Tax Credits

             Charitable Organizations Tax Credits

       Foster Care Tax Credit

These non-profit tax credit organizations exist to give our state’s most vulnerable population hope for their future.  During these extremely uncertain times, you can help ensure that our children are comforted in the knowledge that the world they are familiar with, whether it is their school, their home or their family, will remain constant for them. These four tax credit programs above can help to provide this comfort. 

The great news is you can make your tax credit donation today, and claim the credit when you file your Arizona state taxes. Our new donation page takes just a few minutes to complete and you can even pay with your credit card.   IBE will be here to help you navigate making your donation and getting your tax credit receipt. We are available via phone, email, or chat on our website. IBE will even be available through our website chat until midnight on April 15^th for your convenience.

You are making a difference in a child’s life, helping them thrive at one of our amazing Arizona private schools.  Most of the children we assist are from low-income families and they are counting on your help. 

Please follow IBE's Facebook page to get the latest news and share our posts to help spread the message about the tax credit deadline.

I hope you will join IBE in helping Arizona children and families.

Thank you for putting our Arizona children first.

IBE Covid-19 Update

As our nation pulls together to tackle Covid-19, IBE will be doing our part to keep our employees and community safe. Our office will be closed to the public starting Tuesday, March 17th. Rest assured, IBE is still open for business as usual.  You may reach us at our regular business number, 520-512-5438 from 8am-4pm M-F. If we are experiencing a high volume of calls, please leave a message and we will get back to you as soon as possible.  You may also email us at services@ibescholarships.org or take advantage of our chat feature through our website at ibescholarships.org.  On our website, you will also have access to general information and are able to make a donation on our easier-than-ever donation page.  If you are registered on our website, you have access to your tax credit receipts, as well.  Our goal is to continue to serve our donors, schools, and families with the best customer service possible and we ask for your patience as we navigate this difficult time together.

Private School Tax Credits Save the State of Arizona Millions of Dollars

IBE is a proud member of ASTOA-Arizona School Tuition Organization Association. ASTOA not only advocates for STOs, private schools and all things related to tax credits and school choice, they are also instrumental in keeping their member STOs up-to-date on tax credit law.  In order to help Arizonans understand the benefits of tax credits, ASTOA recently published a white paper, or informational report.  This report highlights how tax credits give lower income families the opportunities offered by school choice while saving the state of Arizona millions of educational dollars. To help our community continue to advocate for school choice options, we have included this link. 

The critical points reflect that STOs and tax credits:

• Allow tens of thousands of students to attend a private school
• Provide a savings to the state of Arizona at least $34.6 million, and potentially upwards of $285 million per year, compared to the cost of educating those students in a public school
• Award 60%-70% of scholarships to low-income families
• Are the primary reason that approximately two-thirds of students in private schools are able to attend
• Achieve a budget-positive result for the State of Arizona
• Are a win-win for Arizona children

Summary findings based on analysis performed by Deborah Sheasby with facts obtained from reports from the Arizona Department of Education, Joint Legislative Budget Committee, and Arizona Department of Revenue.

This report has been released to legislators, staff, policymakers and others who are elected to make a difference in Arizona children’s lives. 

Exciting news for Arizona Business Owners regarding Federal Tax Deductions!

Exciting news for Arizona Business Owners regarding Federal Tax Deductions!

The US Treasury Department has introduced proposed amendments clarifying that Arizona S-Corps or LLCs that file like an S-Corp can deduct state tax credit donations on Federal tax returns. The clarification holds up that Section 162 of the Tax Code will allow eligible businesses that make an Arizona tax credit donation to deduct the donation on their federal taxes as a business expense. 

The business must believe that there is a reasonable expectation that their donation will give them name recognition or goodwill in the community. Alternatively, the business must believe they have a reasonable expectation that the donation will enhance the community and bring employment opportunities to the business with a possible financial return in the future. 

The corporate tax credit cap for 2019-2020 has already been met. Arizona eligible businesses are already planning for next year's Corporate Donations which opens up on July 1, 2020. As always, please confirm with your CPA or tax preparer that this opportunity is best for you. 

For the corporate donation application, please click here: Corporate Donation Application

For the full notice of amendments, please click here: Proposed Amendments

For more information on corporate tax credit donations, go to www.azcorporatetax.org, call 520-512-5438 or email our Corporate Coordinator, Wendi Hauser wendi@ibescholarships.org.

Arizona Offers Five Different Tax Credits

Arizona taxpayers are extremely fortunate that our state offers so many tax credit opportunities. We can have a say in how our Arizona State tax dollars can have the biggest impact on our own communities.

The Private SchoolTuition Tax Credit is one of the five tax credits Arizona has available for you to choose. The other tax credits available are the Foster Care Tax Credit, Charitable Organization Tax Credit, Public School Tuition Tax Credit, and the Military Family Relief Fund Tax Credit. Each one differs on how a taxpayer can contribute, so please click on each tax credit for more information.

The Institute for Better Education offers the Private School Tuition Tax Credit to ensure all children have the best chance for success. Not all children learn the same way and this is especially true for children with special needs. Private schools that specialize in educating children with special needs tend to be expensive; ALL children with special needs should have the option of attending a school that exists for them. Not only can individual taxpayers choose to help our youth, so can eligible Arizona businesses. There are still Corporate Tax Credits available this year also! Contact the Corporate Program Coordinator, Wendi Hauser, at wendi@ibescholarships.org for more information.

Contact IBE to find out how you can help change the lives of Arizona children. We have the tools you need to Make a Difference!

A Thank You to Our Corporate Donors from Our Executive Director

I, along with our amazing staff, would like to personally thank all of our Corporate Donors who put Arizona children first! These businesses utilized their State tax liability towards scholarships for our low-income and disabled/displaced students.  I am very happy to announce that IBE received 100% approvals from the Arizona Department of Revenue during the first round of submittals.  Our Corporate Applications were in the first 30% of approvals AND we received the top spot.  Arizona thrives when our children are educated in the way that is best for their individual and unique needs and they, in turn, give back to our community.  I know the families and schools we serve join with us as we express our appreciation for those investing in our children to make a difference in their lives.  

Kimberly J. Kirschner

Executive Director
Institute for Better Education
(520)512-5438

Making a difference in the lives of Arizona children

Corporate Tax Credit Application Deadline June 30th

Companies can receive a dollar-for-dollar tax credit that will help children with their education. A simple one page application is available through IBE with a coordinator dedicated to making the process simple and easy to navigate for accountants and corporate tax payers. One minute of your time can make a huge difference in the lives of children and also help you save on taxes and direct your tax dollars.

In 2015, Arizona legislature passed a Bill that was signed by Governor Ducey allowing S-Corporations as well as LLCs that file taxes as an S-Corporation, to make a tax credit contribution to a qualified School Tuition Organization (STO) and receive a dollar-for-dollar tax credit. This tax credit flows through to the shareholders in a pro-rata share. This is the envy of many states.
These tax credits are not only for S-Corporations, but also C-Corporations and insurance companies that pay premium taxes in Arizona. Last year, Arizona businesses were so on-board with this opportunity to make a difference in the lives of our children, that the Corporate cap (over $94 million) was met in minutes once Corporate donation applications were accepted by the Arizona Department of Revenue.
This year, all Corporate donation applications must be to your chosen STO by June 30th so they may be submitted by July 1st. We anticipate this cap to be met again the first day of the cap opening so time is of the essence.

Who can donate?
➢ C-Corporations
➢ S-Corporations
➢ LLCs that file as an S-Corporation
➢ Insurance companies that pay premium taxes in Arizona

What program can your donation go to help?
➢ Low-Income Corporate Tax Credit Program (children from low-income families)
➢ Disabled/Displaced Corporate Tax Credit Program (children with disabilities or have ever been in the Arizona Foster Care system)

When does the donation application need to be completed?
➢ The cap opens July 1st, so all applications need to be submitted to your chosen STO by June 30th for processing.

Why IBE?
➢ Unlike other STOs, IBE awards 95% of all Corporate donations
➢ IBE has been providing tax credit scholarships for over two decades
➢ Works with over 290 diverse schools
➢ Businesses can recommend a school(s) or designate to the most needy fund
➢ IBE has a designated Corporate Program Coordinator to answer questions and help with the entire process
➢ Simple process with a one-minute, one page application

How often do we get the chance to help Arizona children reach their fullest potential without costing a single penny?

For more information, please contact Wendi Hauser (wendi@ibescholarships.org) so she can assist you in this easy process. You can also visit our website (azcorporatetax.org) for more information.

Have you considered the impact you could make as a corporate donor?

Philanthropic

• Your company can help disadvantaged children move into the schools that best meet their unique needs.
• Your company can help displaced children who are now, or have been, in Arizona’s foster care program to enroll in the private school best suited to help them.
• Your company can help children with a variety of learning disabilities succeed to their highest potential.
• Your company can join with others statewide that want to be part of the solution – and are doing something about it.
• Your company will give families hope.

Financial

• Your company will receive a dollar-for-dollar tax credit for its donation.
• Your employees will appreciate having their children’s private school aided by your company.
• Your company will be listed as a donor who cares on the plaque in our foyer.

Community

• Your company can recommend a school to benefit from your donation. Local businesses helping local students! Schools will be notified of your generous donation, unless you choose to remain anonymous.

Thousands of kids are depending on you……

please consider participating in the

Arizona Corporate Tax Credit Program today!

Arizona Offers Five Different Tax Credits

The Private School Tuition Tax Credit is just one of the five tax credits Arizona has available for you to choose from. The other tax credits available are the Foster Care Tax Credit, Charitable Organization Tax Credit, Public School Tuition Tax Credit, and the Military Family Relief Fund Tax Credit. Each one differs on how a taxpayer can contribute, so please click on each tax credit below for more information. Also speak with your accountant or tax preparer for specific information about your taxes and personal state liability. Donate today! It's your choice.

Arizona Tax Credits	Due Date    (2018 Tax Year)	Filing Single Maximum	Married Filing Jointly Maximum
Private School Tuition Tax Credit	4/15/2019	$1,107.00	$2,213.00
Foster Care Tax Credit	4/15/2019	$500.00	$1,000.00
Charitable Organization Tax Credit	4/15/2019	$400.00	$800.00
Public School Tax Credit	4/15/2019	$200.00	$400.00
Military Family Relief Fund Tax Credit	12/31/2018	$200.00	$400.00
Total Tax Credit Available		$2,407.00	$4,813.00

December 3rd, 4pm-6pm

You are cordially invited to the premier grand opening event at our new location.

Please join us for our Open House!

Institute for Better Education

921 N. Swan Rd

Monday, December 3, 2018

4:00 p.m. to 6:00 p.m.

Ribbon Cutting Ceremony with Tucson Chamber of Commerce & IBE Board Members

at 4:30 p.m.

Light hors d’oeuvres and refreshments will be provided by Casa Molina

Mark Your Calendars for Giving Tuesday, November 27th!

Call our office at (520) 512-5438 or go online at ibescholarships.org to make your donation.

IRS Proposed Regulations May Affect Your 2018 Taxes

Your State dollar-for-dollar tax credit contribution may need to be made by Monday, August 27, 2018 if you are planning utilizing it for a 2018 Federal deduction

Yesterday, August 23rd, the IRS issued proposed regulations that could affect your ability to utilize your state dollar-for-dollar tax credit as a federal deduction if you itemize.  This is a proposed regulation at this time.  It states only tax credit contributions made after August 27, 2018 will be affected by this proposal if it is approved.  IBE is sending this information out to alert Arizona taxpayers so they can make informed decisions regarding their tax credits.  This in no way affects your ability to receive an Arizona state tax credit. 

Arizona has five different tax credit opportunities:

·         Public School

·         Private School

·         Military Family Relief Fund

·         Qualifying Foster Care Charitable Organizations

·         Qualifying Charitable Organizations

Here is a link to the Arizona Department of Revenue’s information regarding tax credits:

https://azdor.gov/tax-credits

Please keep in mind that these are only proposed regulations and are not final.  Our concern is if made final, the date of August 27, 2018 will already be passed and Arizona taxpayers will no longer be able to claim their tax credit as a federal deduction. 

Consult your tax advisor to determine if this proposed regulation will affect you.

2nd Round Application Deadline Approaching

The second round deadline for 18-19 scholarship applications is August 15th; awards will be listed in your file by October 5th, 2018.
If you have not yet applied for the 18-19 school year, log in to your file to apply online or create an account if you are a new applicant. Printable applications are available on our website under the Applicants drop down menu. Also available are the Previous Award Verification form and Public School Attendance form. These forms are required if you are applying for the Low-Income Corporate or PLUS scholarship program and your student is moving from an AZ public school to private school or has been awarded a Low-Income Corporate, PLUS, or Disabled/Displaced scholarship from another organization.
Please call our office at (520) 512-5438 if you have any questions.

4th of July and Staff Appreciation Week

Our office will be closed July 2nd-6th. For help with corporate donation applications, please email Wendi Hauser at wendi@ibescholarships.org; she will be working through July 2nd to submit all corporate donations and will respond as soon as possible. For all other information, please log in to your file at www.ibescholarships.org to access applications, awards, donations, and receipts. Have a safe and wonderful 4th of July!