Tuition Tax Credit

What it is, How it Works, Benefits

Arizona law (A.R.S. AZ 43-1089) provides for a credit of up to $1,000 against state income tax obligations to any Arizona taxpayer for payments made to a qualified School Tuition Organization (STO).

The Arizona Episcopal Schools Foundation is a qualified School Tuition Organization and a non-profit Arizona corporation, which is exempt under Section 501(c)(3) of the Internal Revenue Code.

The law states 90% of the STO’s funds go directly to qualified students attending member schools. The Foundation gives 90-94% of its funds to qualified students.

The maximum for married couples filing jointly is $1,000. Single or head of household is $500. A taxpayer(s) can contribute to both the private school tax credit and the public school tax credit.

The Foundation does not accept funds designated for a particular child.

The Foundation qualifies for employer matching funds programs. Please double your contribution and check with your employer!

The information presented here is not intended to provide tax or legal advice. Please consult your tax advisor or the State Department of Revenue for questions about individual issues. For more information visit the Arizona Department of Revenue web site.

Facts about the Tax Credit

What: The Arizona State Tax Credit for contributions to Private Schools. AESF (Tax I.D. #86-0973130) is a qualifying Arizona School Tuition Organization (STO) for the purpose of the Arizona state Private School Tuition Credit.

Who: All Arizona taxpayers can participate

Why: To create educational opportunity through scholarships for students to attend the Foundation’s schools.

When: With the 2010 Tuition Tax Credit Reforms, contributions can now be accepted through April 15th for credit in the previous year. A contribution must be postmarked by April 15th or received online by midnight on April 15th to be eligible for credit in the previous calendar year. Contributions received between December 31st and April 15th must indicate which tax year it is to be recorded towards. Contributions received AFTER April 15th will be recorded towards the current tax year.

IRS form 323 must be completed and submitted with your Arizona Tax Return to claim the Private School Tuition Credit. Complete information is available on the Arizona Department of Revenue website www.azdor.gov under Tax Credits.

How: A contribution to the Arizona Episcopal Schools Foundation entitles you to a dollar-for-dollar credit against your Arizona state income tax obligation. The maximum annual contribution amount is $1,000 for married couples filing jointly and $500 for individuals filing single or as head of household. Contributions can be mailed to the Arizona Episcopal Schools Foundation OR made online at www.az-esf.org.

Cost: ZERO Dollars! Your Arizona tax obligation is the funding source. YOU have the POWER to determine how your TAX DOLLARS are utilized!

Information is not intended to provide tax or legal advice. Please consult the Arizona Department of Revenue, the IRS, or your tax advisor for questions about individual issues.