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S-Corporation & Individual Shareholder Reporting Requirements

S-Corporation Reporting Requirements

  • The Corporate Tax Credit is available to an S-Corporation as defined in Section 1361 of the Internal Revenue Code.
  • LLCs taxed as S-Corporations for federal and state purposes are eligible to donate to APSTO for a Corporate Tax Credit.
  • The S-Corporation may make an irrevocable election to pass the credit through to its individual shareholders instead of claiming the credit against income taxed at the corporate level on the 120S.
  • The S-Corporation does not need to have a liability to pass the credit through to its shareholders. The shareholders will apply their share of the tax credit against their individual income tax liability.
  • Any pro rata shares that would be distributed to non-eligible partners (individual partners in a partnership) or estates or trusts (shareholders in an S-Corporation) are lost.
  • The donation to APSTO must be made by the S-Corporation to be eligible for the tax credit, not the individual taxpayer.
  • For Low-Income Corporate Tax Credit donations - Form 335 and Form 335-S will be completed by the S-Corporations and submitted with their 120S. A copy of Form 335-S is also to be forwarded to the shareholders.
  • For Disabled/Displaced Corporate Tax Credit donations – Form 341 and Form 341-S will be completed by the S-Corporation and submitted with their 120S. A copy of Form 341-S is also to be forwarded to the shareholders.

Individual Shareholder Reporting Requirements

  • There is no limit on the Corporate Tax Credit claimed by the individual taxpayer. If the taxpayer’s share of the S-corporation credit is $3,000 then their credit will be $3,000.
  • Form 335-S or 341-S will be completed by the S-Corporation and forwarded to the shareholder. The individual taxpayer will claim their share of the credit on Form 341-I.
  • The Corporate Tax Credit does not impact the individual taxpayer’s ability to claim the Original or PLUS tax credit.
  • The individual taxpayer may carry forward any unused credit for 5 years.

Questions? Call 480-256-1001 or email info@APSTO.org

While APSTO deals with the Arizona Private School Tuition Tax Credit Program every day, we are not tax advisors. This is intended to help guide you but not intended to replace official tax advice. if you have questions regarding your tax situation, it is always best to consult with a tax professional.