Arizona Private School Tuition Tax Credit
✔ Take Control of Your Tax Dollars
Keeping a Tesseract education as affordable as possible is crucial to building a student body that reflects our community.
You can help support this mission by participating in the Arizona Private School Tuition Tax Credit. This program allows you to redirect your state tax dollars to Tesseract School and the student of your choice, at no cost to you.
We have partnered with two School Tuition Organization, Arizona Tuition Connection and TOPS for Kids because they share our goal to help families afford the education of their choice.
✔ New Tax Credit Amounts for 2017
Married, filing jointly – $2,173
Give the gift of education at no cost to you.
At Tesseract School our trustees, faculty, staff, grandparents, corporations and friends have generously donated their time and financial resources to help foster our students’ love of learning. Like all non-profit independent private schools, we rely on tuition income, annual contributions, volunteerism and other fund-raising activities to support our programs. Tuition alone does not cover the full expense of a Tesseract education, nor does it provide the substantial funds needed for financial aid, faculty professional development, and the improvement of facilities and technology.
Voluntary giving creates a partnership between the school and the Tesseract community to provide the highest quality education and opportunities for our students.
Tesseract’s development office is responsible for all programs, related to annual giving, major and special gifts, grants, capital campaigns, fund-raising events, planned giving and gifts-in-kind.
Ways to Give
Any type of asset that you irrevocably donate to Tesseract School will result in a current income tax deduction, but there may be other tax benefits from your contribution. Using assets other than cash allows you more flexibility when planning our gift, and there are even more potential benefits if you plan your gift creatively. Tesseract School encourages you to seek advice from your account, estate attorney or financial advisor before making your gift.
A cash gift by check is one of the most common and easiest methods for making an outright charitable contribution. If you itemize income tax deductions on your tax return, the first tangible benefit of making a gift by cash or check is the tax deduction for the full value of your gift. The annual limitation on the use of charitable deductions claimed for gifts to public charitable organizations is 50 percent of your adjusted gross income for cash gifts. Any unused deduction can be carried over and used for up to five additional years, giving you six full years to use the deduction. The second benefit is seeing the immediate results of your generosity. Further, you are demonstrating a strong commitment helping to support Tesseract School’s mission and are contributing directly to the students.
Contributions made by check, cash or credit card are tax deductible in the year the donation is given. Checks should be made payable to Tesseract School. We accept MasterCard, Visa, and American Express.
To make an online donation click here or contact Tracie Glover Hawxhurst at 480-991-1770.
- Receive a current income tax deduction.
- Reduce your potential estate taxes in the future.
- Determine the exact amount of your desired support.
- Experience the joy of giving today.
Gifts of Securities
It is becoming more common for donors to make gifts of securities. If the security has appreciated greatly in value, you avoid capital gains taxes by gifting the stock directly to the school. We recommend that donors consult their financial advisors before making any final decision.
A gift of your life insurance is sensible and generous. If you make Tesseract the owner of the policy, you will normally receive an income tax deduction for the policy’s fair market value or cost basis, if lower, on the date of the gift. If you name Tesseract the beneficiary of the policy and you continue to retain ownership, you will receive an estate tax deduction for the insurance proceeds.
You may also use the insurance to replace the value of another gift. For instance, you may donate stock to Tesseract because of the tax advantages and purchase life insurance to benefit your heirs in the amount they would have received had you left them the stock.
Benefits to the Policy Owner
- You will receive a charitable deduction when you name Tesseract as a beneficiary and assign our ownership.
- You will reduce your estate taxes because proceeds are removed from your estate.
Benefits to Beneficiary
- You obtain flexibility by naming Tesseract as a beneficiary but keeping ownership.
- Name Tesseract as contingent beneficiary and secure your family’s needs first.
If you sell your primary residence, you can exclude up to $250,000) ($500,000 if you are married) of the gain. A charitable contribution of real estate – whether it is your personal residence, a vacation home, a farm, commercial real estate or vacant land – will give you numerous advantages.
- Receive an income tax charitable deduction for the full fair market value
- Avoid tax on the property’s appreciation
- Prevent the difficulty of trying to sell the property.
- Make a gift to support a great cause and reduce your taxable estate
Charitable Remainder Annuity Trust
A charitable remainder annuity trust allows you to give a gift and continue to receive an income stream from your donation. This plan will pay you, year after year, the same dollar amount you choose at the outset. The income payments are fixed based on the start valuation. Following your lifetime, beneficiary or survivor beneficiary lifetime the remains of the trust is available to Tesseract.
- Receive a fixed-dollar income paid annually, semi-annual, quarterly or monthly
- Obtain a partial charitable deduction
- Increase your income from a low-yield asset
- Gain freedom from investment management
- Avoid up-front capital gains tax on long-term appreciated assets used to fund the trust
Charitable Remainder Unitrust
A charitable remainder unit trust is, in essence, a combination of a gift and an investment plan. You place assets in trust, and then you, or a beneficiary, receive lifetime income from them. Tesseract then receives the remainder. The amount you receive with a unit trust as income is set percentage of the value of the trust assets, evaluated annually. This option is excellent for devising a supplemental retirement plan.
- Receive lifetime income which often is greater than the yield on the contributed assets.
- Obtain a sizeable income tax charitable deduction.
- Avoid up-front capital gains tax if you donate long-term appreciated securities.
Charitable Lead Trusts
Reduce gift and estate taxes on assets you pass on to your heirs with a charitable lead trust. By creating a charitable trust that pays fixed or variable income to Tesseract for a specific term of years, the preclinical is retained for your heirs.
The lead trust is an exceptional way to transfer property to your children or other heirs at minimal tax cost. It is ideal if you are willing to forgo investment income on an asset but do not want to have estate taxes reduce the principal passed to heirs. With a lead trust, you carry out your philanthropic plans over the coming years and save on taxes.
- Reduce your taxable estate and potential gift taxes
- Keep your assets in the family
- Support Tesseract’s mission through annual income payouts
- Fund the trust during your lifetime or through your will.