YUMA, Ariz. -- The Arizona School Tax Credit has allowed taxpayers to contribute to public or private schools and receive a dollar-for-dollar tax credit on their year-end state income taxes as well as a deduction on federal income taxes. Recognizing that year-end finances can be tight, AEA Federal Credit Union in Yuma, Ariz., instituted a 0% financing program to help members fund their 2006 contributions.
The AEA FCU's School Tax Credit Loan is available for qualified members, with membership open to anyone who lives, works, worships, or attends school in either Yuma or La Paz County. Once the loan is funded, the 0% interest rate remains in effect until May 31, 2007.
All Arizona taxpayers can make donations, whether they have children in the school system or not. For public schools, the contribution limits are $200 for individuals and $400 for married couples filing jointly. For private schools, the limits increase to $500 for individuals and $1,000 for married couples filing jointly. Donations can be made to tuition assistance programs such as STAY, CTSO and YESS. The deadline for 2006 contributions is Dec. 31.
The funds are used for a wide variety of programs and activities, benefiting children of all ages. "Taxpayers can donate towards education without creating any hardship on their finances," explained Denise Sweet-McGregor, executive vice president of AEA FCU. "I personally like the various options of being able to support public education, school athletic programs, and private schools," she added. "What better way to show your support for our nation's children?"
More details of the School Tax Credit Loan can be found at www.aeafcu.org.