Tax Credits FAQ
Is this donation a dollar-for-dollar tax credit off my Arizona State taxes?
Yes. Up to the maximum yearly donations set by the state, this donation is a dollar-for-dollar tax credit off your Arizona State taxes.
Is my donation made to a School Tuition Organization or to the School directly?
To qualify under the private school tax credit program, the donation must be made to a qualified School Tuition Organization. Arizona Tuition Connection is a qualified School Tuition Organization.
Can a taxpayer claim multiple tax credits in the same taxable year?
Must a taxpayer have a child in school in order to claim any of these credits?
What is the Maximum amount I may contribute and claim as a credit?
In 2020, the maximum is $1,183 for filing single, or $2,365 for filing jointly.
Can I recommend a specific child receive my donation?
Yes, but you cannot recommend your own child or anyone in your household receive those funds.
Can I swap my tax credit donation with another family?
No, the law is clear that you cannot exchange your tax credit donation in return for receiving a recommended donation from another family. This is true for direct one-to-one swaps or larger group exchanges.
What forms should an individual use to claim these credits?
Arizona Form 323 and Arizona Form 348. Details on claiming the credit will be on the donation receipt we send to you.
Must the credit for contributions be claimed in the year of donation?
No, Credit eligible donations from January 1 through April 15 of a calendar year may be used as a tax credit on the prior year’s tax return. For example, donations made January 1, 2021 to April 15, 2021 may be used as a tax credit on either your 2020 or 2021 Arizona income tax return.
Can a taxpayer receive a refund of these credits?
No. The credits may only be used to the extent they reduce a tax liability to zero. Any unused amounts may be carried forward up to five consecutive taxable years.
A SCHOOL TUITION ORGANIZATION CANNOT AWARD, RESTRICT OR RESERVE SCHOLARSHIPS SOLELY ON THE BASIS OF A DONOR’S RECOMMENDATION. A TAXPAYER MAY NOT CLAIM A TAX CREDIT IF THE TAXPAYER AGREES TO SWAP DONATIONS WITH ANOTHER TAXPAYER TO BENEFIT EITHER TAXPAYER’S OWN DEPENDENT.