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.
If my student received funds from an Empowerment Scholarship Account (ESA), can they also receive a scholarship from an STO?
Tax credit scholarships and ESA funds cannot be used at the same time to pay a student’s tuition. Students receiving ESA funds may still be considered for and awarded tax credit scholarships, but awards will be HELD in the student’s name as Multi-Year Scholarships to be used in a future school year when the student is no longer participating with ESA and the account has been cancelled. (documentation required) We will hold Multi-Year Scholarships as long as an online Scholarship Application is submitted for the student each school year and the student remains enrolled in a qualified Private Arizona School.
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)
How much can I donate?
There are two ways to make a difference with two opportunities to donate!
Tax Year 2023:
“Individual” Tax Credit donation = $655 max single or $1,308 married.
“Overflow/Plus” Tax Credit donation = $652 max single or $1,301 married.
Do both! The maximum tax credit donation for 2023 tax year is $1,307 for single and $2,609 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 $1,308 for married couples filing jointly or $655 for singles for the 2023 tax year.
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 $1,301 if married filing jointly or $652 for single filer for the 2023 tax year.
Tax Year 2024:
“Individual” Tax Credit donation = $731 max single or $1,459 married.
“Overflow/Plus” Tax Credit donation = $728 max single or $1,451 married.
Do both! The maximum tax credit donation for 2024 tax year is $1,459 for single and $2,910 for married donors.
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.