Welcome to the Arizona Private Education Scholarship Fund! We are excited that you are interested in making a dollar-for-dollar tax CREDIT contribution to support private school students in Arizona. “Taking the Credit” is simple…just learn your A-B-C’s!
 |
Arizona Private School Tuition Tax Credit Law, A.R.S. Section 43-1089 allows taxpayers to re-direct their State taxes to organizations that provide scholarships to private school students in Arizona, and either SUBTRACT the amount from the state income tax owed or ADD the amount to their state income tax refund. |
 |
Be Wise. Married taxpayers filing a joint return are allowed an annual credit of up to $1000 or $500 for single taxpayers. Married taxpayers filing separate returns are allowed up to $500 for each individual. |
 |
Credit yourself with knowing that by completing the donation form online or sending it by mail with your check will provide scholarships for students that would NOT be available without YOUR help! |
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 effect your tax planning.
>> Top 5 Misconceptions about Taking the Private School Tax Credit
Unlike other charitable donations, a contribution to APESF qualifies for a dollar-for-dollar tax CREDIT. A tax CREDIT (as opposed to a tax deduction) is subtracted directly from the income tax owed to the state of Arizona. This means that you can support hundreds of deserving private school students in the Valley with money you are already going to pay! Don’t wait…”Take the Credit” for private education TODAY!
 |
 |
 |
 |
 |
Federal tax regulations state that a contribution made for the direct or designated benefit of an individual is considered a “gift” and not a charitable contribution, therefore a tax credit or deduction is not allowed. However, the code does allow for donors to make recommendations which are not designations with the understanding that the final decision to award tuition scholarships is up to the complete and sole discretion of the School Tuition Organization (APESF). Since our inception, we have allowed donors and partner schools to make recommendations to the Scholarship Committee in support of specific students and/or students attending specific schools. Although we cannot guarantee that a recommendation will be honored, we have consistently found that individuals in the community and our partner schools are helpful in identifying students and families who are excellent candidates for tuition assistance and represent our organizational objectives. Therefore, any recommendation received will be strongly considered. It does not, however, imply a guaranteed award.
Reciprocity or “swapping” of any type is strictly prohibited. When two or more individuals agree to recommend each others’ child when making their tax credit contributions with the expectation that their own family members benefit through the exchange or “swap”, it violates federal tax law which states that you may not deduct a contribution from which you receive or expect to receive any benefit. If reciprocity is suspected, the donor(s) will be notified and their recommendation(s) will not be considered. APESF further suggests that any family applying for a scholarship and also making a tax credit contribution should consider recommending either the general fund or students at a particular school and avoid individual recommendations of specific students to protect their donation’s tax treatment.
Resources for donors
- Interest-Free Tax Credit Loans courtesy of Tempe Schools Credit Union
- Tax Forms and Instructions
- Private and Public School Tax Credit Information Publication from the Arizona Department of Revenue