The Arizona Private School Tuition Tax Credit Law-making it work for you
For a summary of tax credit organizations from our Year End Reminder, click here!
For Donors:
· Complete a donation card from a school tuition organization (see list below) recommending a specific student or Paradise Valley Christian Preparatory. Donation Cards may be picked up in the school office or by downloading them from the many websites listed below. Mail the donation card with your donation to the specific organization. Notice: 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 dependent.
. Keep in mind you may not recommend your legal dependent child.
· NOTE: The maximum Arizona school tuition tax credit for married couples is $1,000 per year. The Arizona Private School Tuition Tax Credit Law, ARS Section 43-1089, allows a married couple filing jointly to make a donation to ACSTO each calendar year up to $1,000 and receive a dollar-for-dollar tax credit against the taxpayer's Arizona state income tax. A single taxpayer is limited up to $500.
· Check out your corporate matching gift programs for eligibility too.
· If your Arizona tax liability (amount you owe) is less than the tax credit amount, the amount in excess will be carried forward for up to 5 years. Please review tax liability with your accountant.
· Donations made must be postmarked by April 15th to take tax credit in the previous calendar year.
· To claim the tax credit, complete the Arizona State income tax forms 323 and 301. You will then be able to receive the dollar-for-dollar tax credit off your Arizona income tax bill.
The donation may also be claimed as a deduction on federal income tax forms. Please consult your tax advisor.
For the Recipient
· Each school year you will need to fill out a new Grant Scholarship application. Your child will be considered for an award with a current and complete application on file.
· Request friends, family members, co-workers, neighbors, church members-anyone you know - to recommend their donation for your child or Paradise Valley Christian. Be sure to ask donors to check out their corporate matching gift programs too.
· Don’t just ask Arizona residents—ask your out of state friends and family to contribute too. They may be eligible for the itemized tax deduction for their donation on their federal and state income taxes too.
If you would like a donation form or more information, you may visit the ACSTO website at www.acsto.com, the Arizona Scholarship Fund at www.azscholarships.org, TOPS at www.topsforkids.com, or AZTO at azto.org. For information on the corporate tax program, visit schoolchoicearizona.org.
For a list from the Department of Revenue of other school tuition organizations, please click here. Make sure you check that Paradise Valley Christian Preparatory is a qualifying school for the tuition organization(s) you choose to work with.