Donation Deadline: April 15
A.R.S. 43-1089 (G) allows donors to claim an Arizona state income tax credit for contributions made through April 15 to count toward the prior tax year at the election of the donor. The Federal deduction for the donation will apply in the calendar year it was receipted by APESF. This tax credit donation can be made alongside your other tax credit donations to various organizations.
We are excited that you are interested in making a dollar-for-dollar tax CREDIT contribution to support children in private schools. “Taking the Credit” is simple…just learn your A-B-Cs!
AArizona Private School Tuition Tax Credit Law, A.R.S. Section 43-1089 allows individuals to re-direct their State income tax to School Tuition Organizations, like APESF, that provide scholarships to private school students in Arizona. It’s a WIN-WIN School Choice Program — donors control how their tax dollars are spent, and children receive quality private education!
BThanks to the Overflow/PLUS tax credit that was signed into law in 2012, donors are allowed to claim an additional tax credit – OVER AND ABOVE the original tax credit. Married taxpayers filing jointly are allowed an annual credit up to $2,062, and single taxpayers are allowed an annual credit up to $1,031. Married taxpayers filing separate returns are allowed up to $1,031 for each individual. Donors must first meet the $1,034 (married) or $517 (single) Original Tax Credit Program maximum in order to claim the Overflow/PLUS tax credit. A tax credit donation to APESF will reduce the amount of tax you owe to the State or increase the amount of your refund, dollar-for-dollar. There is NO COST to you, and children receive the benefit!
CCredit yourself with knowing that by making your tax credit contribution online or by mailing a check, you will be showing your support for school choice by voting with your resources while providing scholarships for students that would otherwise be unavailable. Every parent deserves the right to choose the education that is best for his or her child. Thank you for making the choice possible.
Other Important Benefits
- A 5 year carry-forward is allowed if the credit received is in excess of the actual State income tax due.
- The public school tax credit of $400 can be taken in addition to the private school tax credit.
- The tax credit contribution may be eligible for a federal deduction. Please consult your tax adviser on this or any other matters that affect your tax planning.
I get a refund from the state of AZ every year — Can I still make a tax credit donation?
YES! Just because you receive a refund from AZ does not mean you cannot donate to this program. You must find out what you actually owed to the state of AZ at the end of the year, regardless of what you have already paid. This is your state income tax liability. For example, if you originally owed $750 and paid $850 through withholdings or tax payments, your refund would be $100. A contribution to APESF for your full liability of $750 qualifies your donation to receive tax credit treatment with the state of Arizona, and your refund would be $850. In this example, you would get back all of what you originally paid.
I can’t afford to make a donation of $517 or $1034. Does that mean I can’t donate this year?
NO! You can make a tax credit contribution of ANY amount, up to the maximum $517 for single individuals or $1,034 for married couples. If you can only afford to contribute $200, then take the credit for $200! Every dollar helps!
Is this donation just like making a donation to any other charitable organization?
It’s very different! Donations to certified School Tuition Organizations, like APESF, qualify for a dollar-for-dollar tax CREDIT against Arizona state income taxes. In addition, your donation(s) may also qualify for a federal tax deduction. Because tax preparation and treatment is unique to each individual, we recommend consulting your tax advisor regarding any tax-related matters.
What do I need to know about the Arizona Tuition Tax Credit law?
A key part of the law reads as follows:
A School Tuition Organization (STO) 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 own dependent.
The law mandates operational requirements for STOs like APESF to ensure the integrity of this vital program and proper stewardship of public funds. In addition, the law requires that all STOs must consider financial need as part of their application review and scholarship award process. Donor recommendations are permitted but cannot be the only basis for scholarship awards.
In its application review process, APESF determines the need and merit of each applicant in order to figure out what percentage of tuition assistance a family can receive. This percentage may fluctuate from year to year, as families are required to submit a new application for each school year.
In 2012, Arizona signed the Overflow/PLUS tax credit into law, which allows donors to receive an additional credit over and above the original tax credit limits.