What is Arizona Tax Credit?
Arizona Tax Credit is a tax-exempt school tuition organization (STO) which falls under Section 501(c)(3) of the Internal Revenue Code. We provide scholarships to qualifying private schools and students through donations made by individuals or corporations. Arizona Tax Credit is certified by the Arizona Department of Revenue to be in compliance with the Private School Tuition Tax Credit Requirements.
How do I apply for a scholarship for my child?
Fill out our online application every school year. The application process will cover the Individual, Overflow/Plus, and Corporate scholarship award opportunities for your child or children. Financial information is required from all families participating in the Private School Tuition Tax Program. The state of Arizona requires specific financial guidelines for school tuition organizations. Once your completed application has been received; your child or children are eligible to be considered for a scholarship award with Arizona Tax Credit.
Are homeschool students eligible for a scholarship?
Yes. Homeschool students must have been homeschooled prior to enrolling in a private school. Homeschool documentation must accompany the online application.
Can we receive a scholarship if our child or children have a Empowerment Scholarship Account (ESA)?
The ESA statute (A.R.S. §15-2402(B)(3)) requires that while a parent has a contract with the ESA program, a student cannot receive both ESA and STO money for the same period. The ESA program has clarified that a student may utilize an STO scholarship up to the start of ESA funding. Funding from the ESA program is on a quarterly basis and begins in the quarter following acceptance to the program. Once ESA funding begins, any outstanding STO scholarship money must be refunded by the private school to the STO.
Is there an age requirement for a kindergarten student?
A kindergarten student must be 5 years old as of September 1 of the student’s kindergarten school year to be eligible to be considered for a scholarship from an STO.
Do I need to apply for a scholarship if my child has been recommended by a donor?
Yes! A current completed application must be on file for Arizona Tax Credit to consider a scholarship for a child for the current academic school year. As a parent or guardian you must apply every year, since applications expire at the end of each school year. Donor recommendations do not guarantee a scholarship and are not the only factor that Arizona Tax Credit considers when allocating an award.
When are scholarships distributed to schools?
Arizona Tax Credit distributes awards on a bi-monthly(twice a month) basis. Schools will be sent a list of all students and award amounts along with a check. You will be notified via email each time your child has been awarded a scholarship.
How often do I need to apply for a scholarship?
Parents and guardians need to apply for a new scholarship for their child or children each school year.
How can I donate?
How to become a donor to our school tuition organization:
- Donate online with your credit card through our secure site.
- Donate by calling in your credit card information to one of our dedicated staff members at (480)939-2151.
- Donate by check by printing and filling out the donation form and mailing it to Arizona Tax Credit at P.O. Box 1172, Higley, AZ 85236.
Please contact us if you have any questions or need help deciding when to make your donation.
When can I donate?
Arizona Tax Credit accepts donations throughout the year. Donations must be made prior to filing your taxes. For donations made between January 1 and April 15*, you may choose whether to claim the tax credit for the previous or current tax year. In order to have the option to choose which year you claim the credit in, your donations must be postmarked or received online before midnight on April 15*.
(*Deadline date varies per the IRS set date each year)
For tax year 2022 donations can be received before midnight on April 18*, 2023.
How much can I donate?
There are two ways to make a difference with two opportunities to donate!
Tax Year 2022:(donate by midnight of April 18, 2023)
“Individual” Tax Credit donation = $623 max single or $1,245 married.
“Overflow/Plus” Tax Credit donation = $620 max single or $1,238 married.
Do both! The maximum tax credit donation for 2022 tax year is $1,243 for single and $2,483 for married donors.
Individual Tax Credit
The Individual tax credit program allows Arizona taxpayers to donate money to Arizona Tax Credit and receive a tax credit of up to $1,245 for married couples filing jointly or $623 for singles for the 2022 tax year.
2023 Individual Tax Credit Donation: Single heads of household $655 Marries couples filing jointly $1308
Overflow/Plus Tax Credit
This new tax credit was signed by Governor Jan Brewer in February 2012 and became effective in August 2012. The Overflow Tax Credit is in addition to the Individual tax credit. A donor must first give the maximum toward the original tax credit, but then has the opportunity to give an additional $1,238 if married filing jointly or $620 for single filer for the 2022 tax year.
2023 Overflow/Plus Tax Credit Donation: Single heads of household $652 Marries couples filing jointly $1301
For both tax credits for tax year 2022, a taxpayer may donate through April 18 and count their donation as a tax credit for the preceding tax year.
Which tax forms do I use when filing for a tax credit?
When you are filing your taxes, you can claim the tax credit by using the Arizona 301 and 323 forms along with state income tax forms. However, if you make a donation to the Overflow/Plus program, you also need to file a 348 form. All these forms and more can be found at azdor.gov.
Can I recommend a child for a scholarship?
Yes! We will consider your recommendation when you donate to Arizona Tax Credit. You may recommend anyone who is not your child or dependent. Arizona Tax Credit’s selection committee retains complete discretion regarding all awards. As a donor, if you have no particular child you would like to recommend, you have the option to recommend a private school of your choice. Your donation will then be considered for students attending that school who have completed applications on file with Arizona Tax Credit.
How much of my donation is used for a scholarship award?
Arizona law requires that 90% of donated funds be awarded as scholarships. Ninety percent is the minimum amount we will award to qualified K-12 students and schools in Arizona.
Will I receive a receipt for my donation?
If you donate online via credit card you will immediately receive a digital tax receipt at the email address you provided in your application. Donors who make a donation via mail (check)will be emailed a tax receipt also once the donation has been received.
Can my donation be eligible for a federal income tax reduction as well?
Since we are a 501(c)(3) non-profit, your donation may be eligible for a federal tax deduction, however, it is a tax credit.
We highly recommend you ask a tax professional for advice and information on your particular situation regarding the federal tax deduction.