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The Arizona Private School Tuition Tax Credit allows Arizona taxpayers to give to AZTO and receive a dollar-for-dollar tax credit against your Arizona Income Taxes. AZTO then issues tuition awards to eligible students attending one of AZTO’s participating schools.  For a 90 second overview on Arizona’s Tuition Tax Credit Program, please see AZTO’s Vimeo Video.

How it Works

  • You may contribute to AZTO online or by mail with a current year Donation Form to participate in the tax credit program.
  • Contributions can be accepted through April 15th for a credit in the previous calendar year.  A contribution must either be postmarked by April 15th or received online by midnight on April 15th to be eligible for a credit in the previous calendar year.  If April 15th falls on a weekend or holiday, the giving deadline coincides with the federal filing deadline.
  • If contributing online, you will receive an email receipt within moments of making the online donation.  AZTO annually receipts all contributions by mail in January for all prior year contributions.  During the first quarter of the year, AZTO issues receipts monthly by mail for those donations designated for credit in the prior tax year.
  • When completing your taxes, use your AZTO receipt to claim the credit.  Arizona Forms 301, 323, and 348 are used when claiming the Private School Tuition Tax Credits.  These forms become available by the Arizona Department of Revenue each December.

Examples

Below are three examples of fictional donors and how the tax credit might work in their situations.

Example 1 – Bob and Nancy

Bob and Nancy are married and file their taxes jointly. They have withheld $1,000 from their paychecks to pay for their Arizona Income Taxes. They correctly estimate that they have a tax liability of $2,500. The following donations to AZTO will have the following results:

bob-nancy-example

Example 2 – Kathy

Kathy is a single taxpayer who had $500 withheld from her paycheck to pay for her Arizona Income Taxes.  She correctly estimates that she will have a tax liability of $1,100.  The following donations to AZTO will have the following results:

kathy-example

Example 3 – Tom

Tom is a single taxpayer who had $500 withheld from his paycheck to pay for his Arizona Income Taxes.  He correctly estimates that he will have a tax liability of $800.  The following donations to AZTO will have the following results:

tom-example

Tips 

Line 48 on the full Arizona Form 140 (for 2016) will give you a feel for how much you can donate, as long as it is less than the tax credit’s maximum amount for your filing status.  If the donation amount exceeds the tax liability, the difference must be carried over to another tax year, for up to five years.  Also, if you donate to multiple types of tax credits, you need to add together all of the tax credits to determine the maximum allowed for that year.  Most donors feel it is generally preferable to donate an amount that does not require carrying forward to another tax year.   As always, we recommend you consult with your tax adviser regarding your specific situation.  Other credits, deductions, and various factors may apply that would affect your personal result.

If you would like to print these examples:

donation-examples-single-sheet