Create Scholarships Without Affecting Your Take Home Pay
Arizona’s withholding tax reduction law A.R.S. 43-401 allows you to redirect your state withholdings to create private school tuition scholarships for children. It counts the same as if you’d made your tax credit donation in one lump sum, but this way, you can donate smaller amounts throughout the year without affecting your take home pay.
This a dollar-for-dollar tax credit against an Arizona tax liability you're already paying during the course of the year. Through this program, you have the opportunity to change lives, and the only thing it will cost is the time it takes you to fill out a couple of forms. In other words, the net cost to you is zero, but priceless to a child.
Check With Your Employer
See if this is a benefit, they are willing to provide. Please keep in mind, employer participation is optional. If your employer confirms this is a program they will participate in, you can donate to APSTO through your Arizona state tax withholdings. Follow our easy sign up process below.
Decide How Much You Would Like to Donate
The Arizona Department of Revenue sets a maximum donation amount for individual donors each year. Provided you stay within these maximums, 100% of your contributions can be taken as a dollar-for-dollar state tax credit against your Arizona state tax liability. Below are the 2023 state set maximums.
Tax Credit Donation Amounts for 2023
|Tuition Tax Credits
Signing Up is Easy:
Complete APSTO's Withholdings Enrollment Form
. This form must be submitted to APSTO annually for each tax year of participation. If you would like to recommend a student or school receive a scholarship from your donation, there will be a section on the form for recommendations.
Return APSTO’s Withholdings Enrollment Form to us for review. You can email Info@APSTO.org
, fax 480-256-1002, or mail to 6424 E. Greenway Pkwy, Ste. 100, Scottsdale, AZ 85254
APSTO will review your enrollment request. An email confirmation will be provided to you with Arizona Form A-4C
(Request for Reduced Withholdings) and Instructions.
You will review and sign Arizona Form A-4C. You will give this form to your employer and request to participate in Payroll Withholdings for your APSTO tax credit donation.
Note: Employer participation is optional. If your employer agrees to participate, they will withhold your APSTO contribution throughout the year and send your donation to APSTO on a quarterly basis on your behalf.
Claim Your Credit
APSTO will provide a comprehensive year-end receipt to you in January for the previous donation amounts in the prior year. You will use this claim your tax credit.
- Once set up, donations are automatic for the rest of the year, and will automatically stop once the donation amount you elected on your Enrollment Form has reached its limit. Donation amounts withheld during each pay period cannot exceed the percentage you elected on your Form A-4C to be withheld from your Arizona state tax withholdings.
- Any donations made between January 1st and April 15th, whether sent by you directly, or by your employer via withholdings, may be claimed in the previous tax year, provided the donation(s) is postmarked or submitted online on or before midnight of April 15th.
- You may make a separate Donation directly to APSTO if your withholding amount does not add up to the total dollar amount you would like to donate for the year. if your donation total happens to exceed your state tax liability for the year, you can claim this amount for up to an additional 5 years provided your donation amount does not exceed the maximum allowed amount provided by the state for your donation.
- Many employers offer a Matching Gifts Program for charitable contributions made by their employees. Because APSTO is a charitable organization under Section 501(c)(3) of the Internal Revenue Code, these payroll withholdings typically qualify for this benefit.
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.