Turn your Arizona tax liability into tuition scholarships
How Does This Work?
At no cost, you can create scholarships for children. The Arizona Private School Tuition Tax Credit Law A.R.S. 43-1089 allows you to give to the Arizona Private School Tuition Organization (APSTO) and receive a dollar-for-dollar tax credit against your Arizona income taxes. APSTO then turns your tax credit into tuition scholarships for children attending grades K-12 at qualified private schools in the state of Arizona.
This is a dollar-for-dollar tax credit that offsets the amount of taxes you owe. Unlike tax deductions and exemptions, which reduce the amount of your taxable income, tax credits reduce the amount of taxes you owe:
If you owe money for the current tax year, you deduct the amount you donate from what you owe. Example: You owe $3,000 to the state, and you make a tax credit donation of $2,500. You now only owe the state $500.
If the state owes you a refund for the current tax year, your refund will be increased by the amount you donate. Example: You are due a refund from the state of $500. You make a tax credit donation of $2,500 and you’ve increased your refund to $3,000.
In other words, you get what you give. The net cost to you is zero, but priceless to a child.
Watch our two-minute video to see how this tax credit works:
The Donation Process Is Simple:
Determine your state tax liability.
How much will you owe the state of Arizona at the end of the year? Click here if you would like more information about how to determine your tax liability.
Decide how much you will donate.
For tax year 2023, married couples filing jointly can claim a maximum credit of up to $2,609, a single taxpayer up to $1,307. There are two credits you can contribute to. The Original Tax Credit A.R.S. 43-1089 and Switcher (Overflow/PLUS)Tax Credit A.R.S. 43-1089.03. You may donate up to the combined state maximum of these two credits or your Arizona tax liability, whichever is less (see chart below). To claim the Switcher Tax Credit, you must first contribute the maximum amount to the Original Tax Credit.
Tax Credit Donation Amounts for 2023
|Tuition Tax Credits ||Original Credit Maximum ||Switcher Credit |
|Tuition Credits |
|Married Jointly ||$1,308 ||$1,301 ||$2,609 |
|Individual ||$655 ||$652 ||$1,307 |
If you stay within the combined maximum provided by the state for your donation, you can carry forward any unused tax credit for up to an additional 5 years. Anything beyond the maximum would be considered a charitable contribution.
Make your donation.
There are three easy ways to donate:
If you prefer to make smaller contributions every month instead of a larger annual donation, you can create a monthly contribution schedule through our Donor Portal. For more information about this program please go to Monthly Contributions.
Unlike other tax credit programs, you have until April 15th to make your donation and still claim it for the previous tax year. For donations made between January 1st and April 15th, a donor has the option to claim the tax credit for the previous or current tax year. If claiming for the previous year, donations must be made on or before April 15th.
APSTO and state law allow you to recommend a student(s) or school(s) when you make your donation. To recommend a school(s) or student(s), simply fill in that portion of our donor form as desired. There are a few Donor Rules & Restrictions you need to be aware of.
Claim your credit.
To claim the tax credit for your donation, you must file Arizona tax forms 301 and 323 along with your Arizona income tax forms. If you make a Switcher (Overflow/PLUS) donation, you must also file Arizona tax form 348.
For more information on how to claim your tax credit including all the necessary tax forms, please visit Claim Your Credit on our website.
Questions? Call 480-256-1001 or email info@APSTO.org