Benefits

Private School Tuition Tax Credit


Individual Limits
Collectively, the limit for individuals for tax year 2016 is $2,173 (married filing jointly) or $1,087 (filing single or seperately).

The way it works for tax purposes is as follows. Individual donations are applied to the "Original Individual Tax Credit" until the donor reaches their "tax credit limit" for the tax year. At that time, the excess dollars are applied to the new "Switcher Individual Tax Credit" until that credit is also maxed for the tax year. Any donations in excess of the total limit, $2,173 (married filing jointly) or $1,087 (filing single or seperately), are treated as donations which can be taken as itemized deductions on both your federal and state income tax returns.
  1. Original Individual Tax Credit (Claimed on Arizona Form 323)
    • Donors that file married filing jointly, for income tax purposes, can take a tax credit up to $1,090.
    • Donors that that do not file married filing jointly, for income tax purposes, can take a tax credit up to $545.
  2. Switcher Individual Tax Credit (Claimed on Arizona Form 348)
    • Donors that file married filing jointly, for income tax purposes, can take a tax credit up to $1,083.
    • Donors that that do not file married filing jointly, for income tax purposes, can take a tax credit up to $542.
  • You will receive a dollar-for-dollar tax credit on your Arizona income tax return up to the amount of your income tax, or the amount or your donation, whichever is less.
  • The law allows a carry-over of any unused donations for up to five years.

Public School Tax Credit

Maximum Annual Public School Tax Credit:
  1. Married taxpayers $400
  2. Single taxpayers $200
The Public School Tax Credit may be taken in addition to the Private School Tuition Tax Credit.

You may also be able to claim a deduction on your federal tax return for your donation. Taxpayers should consult with their tax advisor for specific tax advice.
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