Arizona law allows taxpayers to receive a dollar for dollar tax credit of up to $200 for individual filers and up to $400 for married filers for contributions made to The Odyssey Preparatory Academy. You can claim the tax credit when filing your Arizona State Income Tax return.
Contributions can be made by completing the Tax Credit Form and include a check for the amount of your contribution. Checks should be made payable to The Odyssey Preparatory Academy.
What is a tax credit? A tax credit is not a tax deduction. A tax credit is a dollar-for-dollar reduction in the actual tax owed. For example, if you owe $900 in state income taxes and you donate $400 to a public school for extracurricular activities, you may subtract the $400 from your tax bill and pay the state just $500.
Do I have to donate the full $200 or $400? You may donate any amount but you will only receive the tax credit for the $200 or $400 limit. You may donate in installments during the calendar year, or donate it at one time.
Do I have to have a child enrolled at Odyssey? No, any individual who pays Arizona State income tax can donate. Anyone with or without children, married or single, can take advantage of this tax credit.
We are encouraging all our families to include The Odyssey Family of Schools (The Odyssey Preparatory Academy and The Odyssey Institute for Advanced and International Studies) as one of your yearly charitable donations. If you donate $400 to Odyssey, and you are eligible for reimbursement, you will receive $400 back from the state of Arizona. If you owe the state taxes this donation will reduce the amount you owe by $400. A contributor can also deduct this donation on the federal tax form.
What to do:
1. Look at your tax returns. Find the “Balance of Tax” line: Arizona From 140 line 26, Arizona Form 140A line 22, or Arizona From 140PY line 22.
2. If you have a “Balance of Tax” due, you could have contributed up to $400 for married couples filing jointly and up to $200 for single filers
3. Contact your accountant or tax advisor as soon as possible to see how much you can contribute for 2016.