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!

Corporate Donation Application Deadline Fast Approaching

The Arizona state cap on corporate tax credit donations will be opening on July 2nd, 2018. The donation application must be received before that date to be submitted on time to the AZDOR. With the new federal tax laws in place, IBE expects the state cap to be met immediately. If you have any questions, please contact our Corporate Program Coordinator, Wendi Hauser, at (520) 512-5438. Read below to understand how the new federal tax laws will affect local S-corps and LLCs that file as S-corps.

New Federal Tax Law Creates Huge Opportunity for S-Corps and Most LLCs

The new Federal tax law has capped the SALT (State and Local Tax) deduction to $10,000.  This means that Arizona taxpayers who itemize on their Federal 1040 form for 2018 may no longer be able to itemize the full amount of this SALT deduction as they had previously.  Below is a chart that shows how the SALT deduction worked in 2017 for S-Corp owners and LLCs that filed their taxes as an S-Corp and how the SALT deduction will work for 2018 without making an Arizona Corporate Tax Credit donation. 

2017 Taxes
S.A.L.T Deduction
State Income Taxes	$  20,000.00
Real Estate Taxes	$    4,000.00
Vehicle Licenses	$     1,000.00
S.A.L.T. Deduction	$  25,000.00

2018 Taxes
S.A.L.T Deduction (capped at $10,000)
State Income Taxes	$  20,000.00
Real Estate Taxes	$     4,000.00
Vehicle Licenses	$      1,000.00
S.A.L.T. Deduction	$   10,000.00

Because there was no limit on the SALT deduction in 2017, the top scenario was common.  With the new Federal tax plan, the bottom scenario is how the same Individual’s 2018 SALT deduction will look if they file exactly the same way.  With their SALT deduction limited to $10,000, 2018 tax return will result in approximately $4,000 in Federal taxes that they did not pay in 2017.  They have lost $15,000 worth of deductions!

Making a dollar-for-dollar 2018 Corporate Tax Credit contribution will be necessary if shareholders want to realize the highest potential itemized deduction. This amazing opportunity is available for S-Corps and LLCs that file as an S-Corp (on the 1120S Form with your K-1).  Shareholders will be taking their Individual State tax liability out of the SALT deduction and putting it into the Charitable Contribution deduction resulting in a HUGE savings in Federal taxes owed and a dollar-for-dollar tax credit on your State taxes! This is how this scenario looks:

2018 Taxes
S.A.L.T Deduction (capped at $10,000)
Real Estate Taxes	$     4,000.00
Vehicle Licenses	$      1,000.00
S.A.L.T. Deduction	$     5,000.00
Charitable Deduction
State Income Taxes	$  20,000.00
Charitable Deduction	$  20,000.00

The shareholder removed their State taxes out of the SALT deduction by making a dollar-for-dollar 2018 Arizona Corporate Tax Credit contribution.  This allows them to put their State taxes into a Charitable Contribution Deduction and they are now able to realize the same amount of deductions as in 2017.  This will save the taxpayer the same approximate $4,000 they would have paid if they had not made a dollar-for-dollar Arizona state tax credit.

As a Corporate donor, you can still recommend a specific Arizona private school.  Please contact Wendi Hauser at 520-512-5438 or wendi@ibescholarships.org for more information.

Why IBE...?

• IBE retains only 5% of corporate donations for admin costs, allowing more money to go to students in need. Other STOs keep up to 10%.
• IBE has been a trusted School Tuition Organization (STO) since 1998.
• IBE works with more schools in Arizona than any other STO.
• IBE is recommended by donors, parents & schools for our commitment to customer service.

How often do we get a chance to make a difference in the lives of Arizona children while saving on our Federal taxes? 

AZ State Tax Deadline will not be extended to match the IRS extension

We have confirmed with the Arizona Department of Revenue that Arizona will not be extending their 2017 state tax credit deadline to match the IRS extension deadline of April 18th at midnight. The state deadline to donate any tax credit was yesterday, April 17th at midnight. If we receive any further information, we will let you know.

It's Not Too Late To Make A 2017 Tax Credit Donation

Arizona taxpayers can still receive a dollar-for-dollar private school tax credit for their 2017 state taxes while making a difference for our children. Donations must be made to IBE prior to filing 2017 taxes or April 17th, 2018, whichever comes first.

Making your 2017 tax credit donation is easy.  You have four options:

•         Click HERE to complete your donation online by midnight on April 17^th
•         Give IBE a quick call at 520-512-5438 before April 17^th at 4:00 pm      
•         Drop your check in the mail to IBE at 911 S. Craycroft Road, Tucson, AZ, 85711 using our printable donation form.  This MUST be postmarked by April 17^th, even if you have filed for an extension.
•      Stop by and see us. We'd love to help you in person.

Thank you for helping IBE make a difference in the lives of our children!

	SINGLE TAXPAYERS	MARRIED TAXPAYERS
2017 Original Tax Credit	$546.00	$1,092.00
2017 PLUS/Switcher Tax Credit	$543.00	$1,085.00

2017 Tax Deadline is April 17, 2018

The tax filing deadline is extended this year until April 17th, 2018 for your 2017 taxes. This means you can still donate to IBE up to that date and receive a dollar-for-dollar Arizona state tax credit if you have not filed your taxes yet! IBE is here to make a difference in the life of a child! Help us help a child and receive an Arizona dollar-for-dollar tax credit for your donation. Find more information at: https://www.ibescholarships.org/Donate/Home

National School Choice Week January 21st-28th, 2018

WHAT IS SCHOOL CHOICE?

EMPOWERING PARENTS AND HELPING CHILDREN ACHIEVE THEIR DREAMS

School choice means giving parents access to the best K-12 education options for their children. These options include traditional public schools, public charter schools, public magnet schools, private schools, online academies, and homeschooling.

Every child deserves an effective, challenging, and motivating education. Today’s students are tomorrow’s leaders, and children should have the opportunity to achieve their own American dreams. Research shows that when parents are empowered to choose the education environments that they believe work best for their kids, students are more likely to succeed and graduate from high school. That is because every child is unique, and students thrive when they’re matched with learning environments that meet their individual needs.

Parents have been able to turn to the Institute for Better Education since 1998 if the right school to fit their child’s needs is not within their financial reach. IBE is honored to play a part in making a real difference in the lives of Arizona children as we celebrate National School Choice Week! To learn more about how school choice affects us all, please visit: https://schoolchoiceweek.com/

Historic Wins for School Choice!

American Federation for Children 2016 Election Memo